We've Got You Covered, but is it enough?

 

Make sure you’re properly protected
At AMIST Super we know that it’s important for our members to protect themselves and their families with competitive insurance cover. That’s why all members have the opportunity to receive automatic life insurance and automatic income protection insurance when they join the fund.

But when was the last time you checked to see how much insurance cover you have? Is your current cover enough to properly protect you and your family?

Why is insurance so important?

Most people think they’re bullet-proof and that bad things happen to other people and not to them. But consider these facts:

• 1.1 million Australians are disabled long-term by heart, stroke and vascular diseases.¹
• One in three men and one in four women will be diagnosed with a cancer in the first 75 years of life.²
• More than half the Australian population suffer from a long-term or lasting medical condition.³
• 5.3% of the workforce experienced a work-related injury or illness in 2009-10.⁴

The fact is, one in two industry super fund members with insurance are under insured.⁵ Don’t be one of them.

1. Heart, Stroke and Vascular Diseases – Australian Facts 2004. Australian Institute of Health and Welfare and National Heart Foundation of Australia, 2004.
2. Cancer in Australia 2001 – Australian Institute of Health and Welfare and Australasian Association of Cancer Registries, 2004.
3. AMP.NATSEM – Income and Wealth report - 2003.
4. Australian Bureau of Statistics – Work Related Injuries in Australia, 2009 - 2010.
5. Australian Institute of Superannuation Trustees – Media Release, 2008.

Life insurance
Life insurance provides a lump sum benefit payment generally to your dependent(s) or legal personal representative in the event of your death. The benefit payable is based on your age at the time of death and the number of “units” of cover you hold. Upon joining the fund, members receive the default level of cover, 2 units, which costs $3.00 per week.

But is this enough to provide peace of mind to you and your family?
Your member statement shows you how much life insurance cover you current have. Think about your lifestyle, your financial commitments and your family’s needs. Would your current level of insurance ensure that your family could cope financially if your were no longer around? If not, you probably should think seriously about increasing your cover.

Need some help? Get free advice
But don’t think you have to work all this out by yourself. You can get assistance right now by calling the AMIST Super hotline and have a chat to a qualified financial planner who can get you thinking about the level of cover that is right for you.

Remember, proper life insurance means peace of mind, so don’t delay.

Income Protection Insurance
AMIST Super recently introduced automatic income protection insurance for all members. And we’re the only meat industry fund to offer this important benefit. Under the minimum 4 units of cover you can claim up to 75% of your pay or up to $2,000 per month (whichever is less) if you become sick or injured and are unable to work.

But is this enough? If you earn more than $32,000 a year, it probably won’t be, so it’s a good idea to review your cover to make it match your income. There’s a table on our website or you can call the hotline for a fact sheet or booklet. Our website that will help you choose the level of cover that’s right for you. And if you earn less than $400,000, your increased cover is/also automatic,with NO questions asked.

AMIST Super Income Protection Insurance benefits at a glance

• Automatic cover for all members (unless you opt-out).
• Minimum cover provides up to 75% of your pay or $2,000 per month, (whichever is less).
• The maximum cost of minimum cover is just $3.00 per week.
• Benefits commence after only a 30 day waiting period.
• Cover is complete, 24/7 anywhere in the world.
• Benefits are payable for up to 2 years (unless you are able tore turn to work sooner) or to age 65. Benefits are also payable at a reduced rate for members between ages 65 and 70 years.

How to apply for increased cover
To increase your cover, post, fax or email a signed application form available here (PDF 4.7MB, page 51) or by calling 1800 808 614.

Here’s an example of the difference insurance can make
Having the right amount of cover is critical in order to avoid financial hardship. For the purpose of this story, we see how Trevor copes with and without this Income Protection insurance after having an accident and not being able to work for six months, but he had his rent and a car loan to pay.

Trevor is 43 years old and works full time, earning $48,000 a year. He is single and doesn’t have any other savings apart from his super.

Situation 1:
Trevor doesn’t have any Income Protection insurance but may qualify for a full disability support pension, which he must rely on until he is able to return to work.

Situation 2:
Trevor has the standard Income Protection insurance (four units of cover) that he receives automatically as an AMIST Super member, covering a salary of up to $32,000 p.a. Trevor may also qualify for a partial disability pension payment.

Situation 3:
Trevor has increased his Income Protection insurance (six units of cover) which covers his salary of $48,000 a year. Trevor may also qualify for a partial disability pension payment.

The table below shows Trevor’s income for each of these situations

	Situation 1	Situation 3	Situation 3
	No insurance cover, disability pension only	Standard Income Protection cover1 (four units of cover)	Increased Income Protection cover1 (six units of cover)
Payments per fortnight	$716	$923 insurance benefit; $319 disability pension2	$1385 insurance benefit; $84 disability pension2
Total income per fortnight (before tax)	$716	$1,242	$1,469
Income protection benefit per year	nil	$24,000	$36,000
Total income per year (income protection payments + disability pension)	$18,619	$32,294	$38,177
Insurance premium cost for Income Protection cover	Nil	$3.00 a week for a manual worker $2.12 a week for an office worker	$4.50 a week for a manual worker $3.18 a week for an office worker

1.If an Income Protection benefit is to be paid, payments will start after a 30 calendar day waiting period from the time the injury occurred or Trevor became ill. Acceptance of a claim will depend on meeting the terms and conditions of the insurance policy. Insurance benefit payments are subject to income tax. However for simplicity, income tax has not been taken into account in this example.

2. Partial disability pension payments are calculated based on pension rates as at 20/12/2010 and assume that no other income is received.