Overview of Death and IP Insurance

Insurance protection can be an important part of your financial strategy. All NCSF members that satisfy the eligibility criteria are eligible to apply for standard Death and Income Protection insurance cover. To apply for cover for Death and Income Protection insurance, you must complete the application for membership form and select the level of insurance cover you require. If you do not select insurance cover at the time of joining the Fund, the standard cover of 2 units of Death and 2 units of Income Protection Insurance will be provided automatically unless you indicate that you do not want that insurance cover.

Spouse members are eligible for Death insurance cover only.

The Insurer

The insurance cover is provided to the Trustee by ING Life Limited (ING) ABN 33 009 657 176 (the Insurer). Your insurance cover is subject to the Trust Deed and the policy document of the insurer, the main features of which are described in this website. Please note that this is a summary only. You can obtain a copy of the detailed policy document by contacting the Fund. If any of the main features do change, we will notify you in writing. If there are any inconsistencies between the information in this website and the terms set out in the policy document, the policy terms will prevail.

Employer Supported Members

If you are an employer supported member you will automatically receive 2 units of Death and Income Protection insurance cover (subject to policy conditions) without completing a Personal Statement of Health form.

Personal Super Members

If you are making your own contributions into the Fund and do not have employer contributions paid for you into NCSF you will need to apply for Death Insurance cover and complete a Personal Statement of Health form. Contact 1300 655 002 and request for a Personal Statement of Health form to be mailed to you.

Income Protection (IP) Insurance for disability (illness or injury)

Income Protection insurance is designed to provide you with a monthly income 75% of your average salary received during the 12 months prior to ceasing work up to a maxium of $430 if you are considered totally disabled. Provided you continue to satisfy the total and permanent disablement definition, benefits under the Income Protection insurance (‘IP benefits’) is payable through to age 60.

Waiting Period

The payment of monthly IP benefits, to eligible members, commences after the waiting period of 3 calendar months after ceasing employment, a claim has been made and after all claim evidence has been completed and accepted by the Trustee and the Insurer.

Definitions of Disability

If you lodge a claim and it is accepted you may receive IP benefits during the first two years provided you are considered disabled in accordance with the following definition of total disability:

An injury or illness that stops the member performing one or more duties of his/her regular occupation necessary to produce income, as confirmed by a medical practitioner and the member is not engaged in any occupation.

If you have been in receipt of IP benefits for a period of two years or more, your claim will be reassessed using the following definition:

An injury or illness that renders the member likely never to be engaged in any gainful occupation, business, profession or employment, for which the insured person is reasonably suited by education, training or experience.

Premium and Cover

The premium for standard cover is $1.00 per week. GST does not apply to this premium.
Standard cover consists of 2 units of Income Protection insurance.
The two standard units of Income Protection insurance usually provides disability cover of $430 per month for member’s aged 15–59 and the cover is granted without the need for evidence of health, providing insurance is taken out immediately upon joining your employer. Joining the Fund at a date after your employment commencement date will require completion of a personal statement regarding your health.
You may choose additional units for a higher amount of cover up to a maximum benefit of $10,000 per month or 75% of salary whichever is the lesser or you can choose to reduce the number of units or have no disability cover at all.
The premium per unit for additional cover is $0.50 per week.
Acceptance of additional cover (more than 2 units) is subject to satisfactory completion of a personal statement regarding your health. A personal statement can be obtained by contacting the Fund.
Note that additional cover benefits may vary depending on your age at date of claim.
Insurance cover will commence from the date you join the Fund or from the date your employer paid the first superannuation contribution on your behalf whichever is the later.
Should you wish to decline the default insurance cover you will need to advise the Fund in writing. Cover will cease effective from the date your written request is received.

How to apply for additional IP insurance

Important note: Prior to applying for additional insurance you will need to ensure that your employer is remitting regular superannuation guarantee contributions on your behalf.

Formula for additional IP insurance

To calculate the number of units required for additional cover at your current age refer to the following formula and additional IP insurance table.

Example based on:

a) Average annual gross salary over 12 months prior to ceasing work $30,000.
b) Cover of 75% of (a).
c) Current age 30 years.

Step 1 Calculate % of monthly salary to be covered (maximum allowable is 75%)

75% of $30,000 = $22,500/12

= $1,875 per month.

Step 2 Deduct standard $430 (benefit payable for 2 units of cover)

$1,875 less $430 = $1,445 additional cover required.

Step 3 Divide by your monthly benefit at current age (refer to Additional IP Insurance table)

Current age 30 years = $498 of coverage per each additional unit.

$1,445 divided by $498 = 2.9 units (round to nearest unit = 3 units). Therefore a total of 5 units ($1.00 pw for the first 2 units of standard cover + $1.50 for 3 units additional cover at $0.50 pw each.) This equals $2.50 per week and provides maximum cover of $1,875 per month.

The following table shows the additional IP Insurance cover that may be applied for (over and above the standard 2 units of cover paying up to $430 per month).

When Total Disability Benefits are paid

a) The Insurer will pay the monthly benefit when an insured member is totally disabled for longer than the waiting period. The monthly benefit starts to accrue from the day after the end of the waiting period.

b) The monthly benefit is payable in respect of an insured member monthly in arrears and stops at the earliest of:

the end of the benefit period i.e. payable through to age 60
the date the insured member attains the benefit expiry age
the date of death of the insured member; or
the date the insured member is no longer totally disabled

Addtional IP Insurance Table

Age at Date of Claim Coverage per 50 cent unit Age at Date of Claim Coverage per 50 cent unit

15 to 19 $612 40 $251

20 $594 41 $230

21
$589 42 $211

22 $591 43 $193

23 $585 44 $181

24 $563 45 $169

25 $572 46 $158

26 $570 47 $148

27 $560 48 $139

28 $542 49 $135

29 $509 50 $128

30 $498 51 $122

31 $474 52 $118

32 $447 53 $117

33 $420 54 $126

34 $391 55 $135

35 $364 56 $153

36 $339 57 $191

37 $315 58 $309

38 $293 59 $1,325

39 $275 60 $0

When the IP benefit payable is reduced

The IP benefit otherwise payable in respect of an insured member is reduced by other payments (including settlement or commutation amounts) received by the insured member, the Trustee or the participating employer in respect of the insured member:

by way of workers’ compensation
by way of social security or other statutory or governmental payment
in respect of loss of income (whether under legislation or otherwise)
under any statutory accident compensation scheme and
as benefits under any other disability, injury or sickness insurance policy (except for lump sum benefits received for total and permanent disablement under such insurance policy).

For the avoidance of doubt, sick leave and long service leave entitlements and investment income received by the insured member will not be taken into account.

Any lump sum payment will be converted to an equivalent monthly amount at the rate of 1/60th of the lump sum per month for a maximum of 5 years.

Exclusions for IP Insurance cover

a) IP benefit payments will not be made if the event giving rise to the claim is caused directly or indirectly:

by war, or act of war;
by an insured member’s intentional self-inflicted act;
by pregnancy, unless the insured member is totally disabled for more than three months after the end of the pregnancy, in which case the waiting period is deemed to start on the later of, the date total disability begins, and the end of the pregnancy.

b) The Insurer may reduce or refuse to pay IP benefits:

if the premium has not been paid in respect of all insured members;
if the Trustee or the insured member do not comply with the Insurer’s claim requirements;
where the Insurer has not received notice as soon as reasonably possible after an insured member’s disability starts, to the extent their assessment or management of the insured member’s claim is prejudiced;
while the insured member is imprisoned as a consequence of being convicted of committing a criminal offence.

Continuation Option

Where an insured member’s IP cover ends because he or she no longer satisfies the eligibility criteria and:

he or she is continuing in a gainful occupation on a full-time basis; and
did not cease to satisfy the eligibility criteria because of injury or illness,

The insured member has a “continuation option”. This means that he or she may apply for an individual disability indemnity policy with the Insurer on his or her life. For further information please contact the Fund and we will arrange for the Insurer to contact you.

Important notes about Income Protection

In the event of a claim, it is likely that casual or low paid members may not be eligible to receive the full $430 per month IP benefit. If your income is less than $6,880 p.a. we suggest that you carefully consider the amount of cover you wish to select. IP benefits are subject to a maximum of 75% of the gross annual salary immediately prior to ceasing work.
IP benefits, once payable, are increased each year in line with the Consumer Price Index, or 5%, whichever is the lesser.

Death Cover

The premium for standard cover is 80 cents per week. GST does not apply to this premium.
Standard cover consists of 2 units of Death Cover.
Death Cover provides a lump sum amount for your beneficiaries in the event of your death.
Your first two units of standard Death Cover will be granted without the need for evidence of health (if cover is taken out immediately upon joining your employer).
If you wish you can choose additional units for a higher amount of cover up to a maximum of a total of 15 units (including 2 units of standard cover), or you can choose to reduce the number of units or have no death cover at all.
Acceptance of additional cover (more than two units) is subject to satisfactory completion of a personal statement regarding your health. A personal statement can be obtained by contacting the Fund.
Death cover continues to age 70, you cease to be a member of NCSF or certain other circumstances arise.
Note that additional cover benefits may vary depending on your age at date of claim.

How to apply for additional Death Cover

Important note: Prior to applying for death insurance you will need to ensure that your employer is remitting regular superannuation guarantee contributions on your behalf.

Each unit of Death Cover provides the following protection

Age at date of Claim Cost per week
40 cents (1 unit) Cost per week 80 cents
(2 units)

39 or less $30,000 $60,000

40-44 $24,000 $48,000

45-49 $18,000 $36,000

50-54 $10,500 $21,000

55-59 $5,000 $10,000

60-64 $3,000 $6,000

65-69 $2,000 $4,000

70 $0 0$

Parental leave
Death Cover continues for any period of approved parental leave for a maximum of twelve months and the premium continues to be deducted from your account.

When the Death Benefit is paid

The Insurer will pay the benefit under the Death Cover (‘Insured Death Benefit’) in respect of an insured member when that insured member dies:

while this policy is in force
before the insured member’s cover ends; and
before the insured member attains the benefit expiry age for the Death Benefit

The amount of the Death Benefit is shown in the schedule for each unit of cover then applying in respect of that insured member.

When Death and Income Protection cover ends for insured members

Cover for all benefits provided to members will end on the earliest of the following:

the date the policy ends
the date you reach the benefit expiry age (i.e. attaining the age of 70 for Death cover and attaining the age of 60 for Income Protection cover)
the date you die
the date you cease to be a member of NCSF or for IP it is when the last on time contribution has been received (unless you apply for the IP Insurance continuation option)
if you have insufficient funds to enable the Fund to deduct the premium due
the date the Fund receives your written request for cover to end (unless such request specifies a later date, in which case, the date specified in the request)
on the last day your employer makes a final contribution on your behalf (where you are ceasing employment)
the date you commence active duty with the armed forces of any country

Note: In the event of war involving Australia or the insured member’s country of residence, the Insurer may offer increased premium rates.

Conditions of Insurance

In addition to the exclusions previously mentioned, there are a number of insurance conditions that you should be aware of:

The Trustee has elected to meet the cost of insurance premiums for the Fund and if the premiums are not paid by the Trustee within 30 days of the due date, the Insurer may cancel or terminate the Fund’s policy by written notice to the Trustee and any claim which arises after the due date may not be assessed by the Insurer.
If your account is insufficient to meet the cost of premiums, cover will cease.
The amount or type of standard insurance cover NCSF select may not be sufficient to provide adequate insurance cover in the event of injury or illness.
If you or your employer do not disclose to the Insurer every matter that you know or could reasonably be expected to know, that would be relevant to the Insurer’s decision whether to accept the risk of the insurance and if so, on what terms, the Insurer may void the contract within three years of entering into it. If you or your employer’s non-disclosure is fraudulent, the insurer may void the contract at any time.

Please contact the Fund on 1300 655 002 if you have a query or require further information on any aspect of your insurance cover.

Age at Date of Claim	Coverage per 50 cent unit	Age at Date of Claim	Coverage per 50 cent unit
15 to 19	$612	40	$251
20	$594	41	$230
21	$589	42	$211
22	$591	43	$193
23	$585	44	$181
24	$563	45	$169
25	$572	46	$158
26	$570	47	$148
27	$560	48	$139
28	$542	49	$135
29	$509	50	$128
30	$498	51	$122
31	$474	52	$118
32	$447	53	$117
33	$420	54	$126
34	$391	55	$135
35	$364	56	$153
36	$339	57	$191
37	$315	58	$309
38	$293	59	$1,325
39	$275	60	$0

Age at date of Claim	Cost per week 40 cents (1 unit)	Cost per week 80 cents (2 units)
39 or less	$30,000	$60,000
40-44	$24,000	$48,000
45-49	$18,000	$36,000
50-54	$10,500	$21,000
55-59	$5,000	$10,000
60-64	$3,000	$6,000
65-69	$2,000	$4,000
70	$0	0$