AustralianSuper Income Protection

AustralianSuper income insurance could be good if you want cover inside your super fund.

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AustralianSuper - Pre-mixed, Balanced option

AustralianSuper - Pre-mixed, Balanced option

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Our Verdict:

  • The maximum amount you can apply for is $30,000 a month or 85% of your salary, whichever is lower — that's 10% more than most providers who offer income protection as a standalone policy (though 10% will be paid to your super).
  • Unlike standalone policies, premiums come out of your super. This could be good if you want cover but want one less bill to come out of your bank account each month.
  • If you're worried about it eating into your super, you might be better with a standalone income protection policy.

Review by our writer Gary Hunter

Other features of AustralianSuper income protection cover include:

  • Nominate your cover amount: You can apply for income protection cover amount of up $30,000 (40 units) or 85% of your average salary (whichever is lower).
  • Cover for rehabilitation expenses: AustralianSuper will cover the costs incurred from your rehabilitation.
  • Ability to increase your cover when your first join AustralianSuper: You can increase your cover at any time without needing to provide additional health information up to a certain limit.
  • Increase your level of cover when your salary increases: You can also increase your cover without needing to provide additional health information when your income level has changed. Specific terms and conditions may apply.
  • Access to cover even when you are not employed: You will continue to be covered even if you are not in active employment. Although your level of cover will be limited until you return to work.
  • Increase your cover at important life events: With AustralianSuper income protection, you have the flexibility to change your cover when a specific life event occurs and you won't have to provide health information. Life events that are covered under AustralianSuper cover include marriage, birth of children, divorce or death.
  • Interim accident cover: When your application is being assessed by the insurer, you will be covered under interim accident cover of up to $15,000 per month.
  • Waiting period: You must be disabled for at least 14 days before you are eligible to claim on your AustralianSuper income protection policy. You have a choice of either 30 or 60 day waiting period.
  • Recurring disability: If you suffer from a similar or related illness or injury within six months of your previous income protection claim, no new waiting period is applicable.
  • Extended waiting period: AustralianSuper can extend the waiting period if you have another income protection policy in place and are receiving benefit payments from this cover. If you continue to be disabled when your other policy has cease the payments, AustralianSuper will start paying you the benefits.

When will AustralianSuper Income Protection payout?

There are two types of payments for available under this income protection:

  • Full. This is full amount of income protection you'll get paid if you are totally disabled.
  • Partial. You'll get paid part of your income if you are partially disabled or work part-time.

Disability definitions

According to the product disclosure statement (PDS):

Total disability

Partial disability

Note: The above is a general tip based on AustralianSuper's Insurance Guide.

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4 Responses

    Default Gravatar
    BrentJune 19, 2019

    I Would Like Income protection insurance if i take this out can i claim it on my tax like with any other income protection policy ??

      Default Gravatar
      BellaJune 20, 2019

      Hi Brent,

      Thanks for your inquiry.

      The Australian Taxation Office (ATO) explains that you can claim the cost of premiums you pay for insurance against the loss of your income. As long as your income protection premiums relate to earning an assessable income and provided the policy is held outside of your superannuation fund, your premiums can be claimed as a tax deduction.

      You can learn more about when can fringe benefits tax be claimed for income protection from our income protection and tax (ATO rules) guide.

      I hope this helps.

      Kind regards,
      Bella

    Default Gravatar
    JaneNovember 5, 2018

    I have income protection with AUST Super, does that cover all illnesses?

      Avatarfinder Customer Care
      JhezNovember 6, 2018Staff

      Hi Jane,

      Thank you for your comment.

      According to Australian Super’s PDS, you won’t be covered for any illnesses or injuries you had before you got your cover and it may last for different lengths of time. Your Income Protection comes with a benefit payment period of up to two years which means benefits may be paid a maximum of two years if you’re temporarily unable to work due to illness or injury. The type of illness will be assessed by your insurer so it’s best to verify your claim with Australian Super.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

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