Insurance

Death cover provides a lump sum payment in the event of your death, or on diagnosis of a terminal illness. It can be used for your debts, your funeral, or to help your family pay the bills that keep coming in.

TPD cover provides a lump sum payment if you become totally and permanently disabled. It can be used for your ongoing bills (such as mortgages and living expenses) and for your medical expenses.

Income protection cover provides you with an ongoing payment if you can’t work for a long period because you are sick or injured. You can receive up to 75% of your income plus 10% super to a maximum of $25,000 per month (depending on your level of cover). This way, you don’t have to think about the bills. You can concentrate on recovering.

Government legislation called Putting Members’ Interests First means super funds can only provide insurance to the following members if they “opt in”:

• members with a super balance under $6,000
• members who are under age 25 and hold a new super account from 1 April 2020.

If you fall into either of these categories, you must make a Valid Election (opt in) to have insurance. If you don’t opt in, you will not receive any automatic default insurance cover until you meet the General Eligibility criteria (as detailed below).

Members who joined First Super on or after 1 April 2020 can opt to have insurance by:

• completing our online Insurance Opt-in Form
• completing and returning the printed Insurance Opt-in Form, which we send with new member welcome packs.

I’M A NEW MEMBER I WANT INSURANCE INSIDE SUPER

You can find full details about your cover – including the units held, cost and sum insured – by logging into our member portal, firstonline. Alternatively, contact our Member Services Team on 1300 360 988 or mail@firstonline.com.au.

If you wish to:

> fix the value of your current insurance cover so it doesn’t decline over time

> apply for White Collar / non-manual or Professional cover rates

> reduce or cancel your cover

you can do this at any time by completing the Vary Your Insurance Cover Form.

If you wish to:

> apply for more units of insurance

> apply for a fixed amount of insurance that is more than you hold at the moment

> apply for Income Protection insurance

you can do this by completing and returning the relevant sections of the Application for Insurance Cover Form.

Alternatively, if you would like to increase or change your cover, or apply for Income Protection insurance, you can do so through eApply by logging in to firstonline.

If you wish to cancel some or all of the default insurance cover, please tell us in writing or call the Member Services Team, otherwise your default insurance cover will continue and premiums will be charged to your account.

Due to Putting Members’ Interests First legislation, First Super was required to cancel insurance inside super for members on 1 April 2020 if:

• their First Super account balances did not reach or go above $6,000 between 1 November 2019 and 31 March 2020, and
• they did not elect (opt in) to keep their insurance cover.

Under this legislation, unless you tell us otherwise, your insurance will automatically start again at the default level if:

• you are aged 25 or over and the value of your account balance reaches $6,000, and
• a contribution or rollover has been made into your First Super account within 16 months of your account balance value reaching $6,000.

If you don’t want insurance in the future, please contact our Member Services Team. They can update your member record and remove you from the automatic opt-in.

If you wish to have insurance cover again with First Super, you can do this at any time via eApply in firstonline or by completing an Application for Insurance Cover Form.

General Eligibility
A member meets the General Eligibility criteria if:

1. he or she is aged between 11 and 69 (inclusive) and
2. he or she is not a person who elects not to have insurance cover held on his or her behalf and
3. has not been paid or been eligible to receive a Total and Permanent Disablement (TPD) benefit from any superannuation fund (including First Super) or any other policy of life insurance.

If a person has been paid or is eligible to receive a TPD benefit from any superannuation fund (including First Super) or any other policy of life insurance, any further TPD cover will be restricted to Limited Cover.

Eligibility for default cover (automatic)
Default cover for a new member is provided automatically  if the member meets General Eligibility and satisfies the following requirements:
> the member is aged 25 and above; and
> the member’s account balance has reached at least $6,000  at least once, OR
> the member has elected that cover should continue to be provided even if he or she is aged under 25 or has an account balance below $6,000.

Eligibility for default cover (opt in)
Default cover is provided automatically if the member meets General Eligibility, and: > cover had not already commenced (cover via automatic commencement);
> had not previously opted out or cancelled cover or cover ceased for any reason;
> the Fund receives a Valid Election from the person for default cover to commence.

If you wish to keep the default insurance cover provided, no action is required. However, we will be required to cancel your cover on the Friday immediately prior to a continuous 16-month period during which no Active Contribution has been received on your behalf unless a Valid Election has been made.

When you join First Super you will be covered automatically for 4 units of Death and TPD, provided you are aged between 11 and 69 years, subject to eligibility conditions being met¹ (see ‘Eligibility’ details above).

You then have several options, including:
> dropping some or all of the default insurance cover;
> keeping the default insurance cover provided;
> changing to the lower cost White collar / non-manual or Professional rates if you qualify for them;
> doubling your default insurance cover without the need to provide health evidence (Employer-Sponsored members only within six months of commencing employment with your employer);
> fixing the value of your default insurance cover so it doesn’t decline over time;
> applying for more units of insurance;
> applying for a fixed amount of insurance; or > transferring other insurance you have into First Super².

1. Note: if you have previously been paid or been eligible to receive a Total and Permanent Disablement benefit, your Total and Permanent Disablement insurance is only covered by Limited Cover. You should contact First Super for more information.
2. Subject to conditions.

This means a member being covered only for claims arising from a New Event.

New Event means an illness which first becomes apparent or an injury which first occurs on or after the date that cover last commenced, recommenced, or was reinstated in respect of the member.

For more details on Limited Cover review the Insurance Guide.

You may be able to transfer your current insurance arrangement up to the value of $1.5 million to first super without having to provide medical evidence.

If you wish to apply to transfer other insurance cover you have into First Super, you can do this at any time by completing the Application to Transfer Insurance Cover Form.

Please contact our Member Services Team for further details.

Where cover stops due to lack of Active Contribution for 16 months or more:

Default cover (Blue Collar / manual rates) recommences on the date an Active Contribution is received, where the member:

• is aged 25 and above; and
• has an account balance that reached $6,000 or more at least once; or
• upon the application for underwritten cover and acceptance by the Insurer.

Limited Cover conditions will apply.

Where cover has ceased on 1 April 2020 due to an account balance being less than $6,000

Default cover will recommence once the member has satisfied the eligibility requirements set out in ‘Eligibility for default cover (automatic)”.

The cover that recommences will be default cover (Blue Collar / manual rates), and Limited Cover conditions apply.

Death and TPD insurance cover doesn’t cover claims caused directly or indirectly by war or an act of war outside of Australia, although the Insurer may offer to continue insurance cover in exchange for increased premium rates in some circumstances.

First Super and its service providers must comply with the law when making benefit payments, and a benefit cannot be paid where to do so is likely to breach an applicable legal obligation. This includes situations in which sanctions and embargoes are imposed under a United Nations resolution or the laws and regulations of (among others) the European Union, Australia, or the USA. Your insurance cover is likely to be affected if you become personally subject to such sanctions or embargoes, if you travel to a place that is subject to such sanctions or embargoes or if payment of a benefit to any party would breach such sanctions or embargoes.

Members can apply for Income Protection insurance cover if they:

• are aged between 16 and 64 years of age inclusive; and
• work on a permanent full-time basis, or part-time and working at least 15 hours per week on a regular basis. Casual employees are not eligible for Income Protection cover.

Cover is subject to the Insurer’s acceptance on such terms and conditions as required.

Applications must be in writing using the Application for Insurance Cover Form or via eApply, which members can access by logging in to their firstonline member portal. The Insurer will consider your application and may request medical and other information about you before deciding whether or not to approve your application.

If your application is accepted, you will be notified of the acceptance and the date on which the insurance cover, or increase in insurance cover, starts.

See page 9 of the Insurance Guide for further information on Income Protection insurance and details on how to transfer existing cover to the First Super product.