Legislative changes in effect from 1 April 2020 may lead to your existing / new insurances being cancelled.
Income Protection covers you for sickness or injury which prevents you from being able to work in your current occupation for up to 2 years. It is made as a regular payment that stops when you go back to work.
The way it works is that if you make a successful claim, then you will be paid a regular income that stops after two years or when you go back to work, whichever occurs first.
If you earn less than $40,000 per year and have the standard cover (5 units), the maximum amount you could receive in the event of making a successful claim is 75% of your income. Income Protection only ever pays 75% of your annual income. For example, if you are on a salary of $40,000 per year, the maximum amount you would receive per annum is $30,000. If you earn less than $40,000 per year you are able to reduce your cover below the default level of 5 units.
For those earning more than $40,000 per year, you have the option of increasing your level of cover. Consider this… If you only have the standard cover (5 units) and you make a successful claim, you will only receive $30,000 for the year. That’s approximately $2,500 per month. That may not adequately cover your financial needs if you are unable to work.
If you increase your level of cover to match your income requirements, you will receive 75% of your income in the event of a successful claim. So it’s a good to consider seeking some advice on how much cover is appropriate for you. Call the AMIST Super Hotline on 1800 808 614 and speak to a qualified financial planner about the right of amount cover to suit your needs.
Please note that an Income Protection benefit is paid weekly. Therefore, a member with the default level of cover (5 units) would receive a weekly benefit before tax of $576.90 ($2,500 per month x 12 = $30,000 ÷ 52 weeks = $576.90). Each unit of Income Protection insurance cover provides a weekly benefit(before tax) of $115.38.
How it works
If you are aged between 25 and 70 years old when you join AMIST Super, your eligibility for automatic default Life, TPD and IP cover will be provided:
- if you have an opening account balance of $6000 or more, from the day you join.
- if your opening account balance is less than $6000, once your account balance reaches $6000.
You are not covered for pre existing conditions unless you have been at work for 30 consecutive days after cover commenced and we have received a superannuation guarantee contribution.
If you are not yet age 25 or your account balance is under $6,000 if you want Insurance Cover you need to apply. This is known as Opting into Insurance.
Depending on when you Opt In different conditions will apply to the cover provided.
If you choose to Opt into insurance cover within 90 days of receiving your Welcome Letter, you won’t need to answer any health questions.
If you opt in you are not covered for pre existing conditions unless you have been at work for 30 consecutive days 12 months after cover commenced and we have received a superannuation guarantee contribution.
Standard cover is 5 units, at a cost of $2.75 per week for manual workers¹ or $2.00 per week if you work in an office². Under this standard cover, you can claim up to 75% of your pay or up to $2,500 per month (whichever is less) if you become sick or injured and are unable to work.
If you earn more than $40,000 per year you also have the option to increase your level of cover. And if you do so within 90 days of receiving your Welcome Letter from us, the increased benefit will be automatically approved including cover for a pre-existing sickness providing that you are Actively at Work at the time of the application. This applies to members who earn up to $400,000 per year. Benefits are limited to the lesser of 75% of your normal average income earned from employment during the 52 weeks prior to the last pay period before any injury or sickness resulting in a claim under the Policy and the amount of cover that has been approved.
To see the different rates of cover, click here.
The Income Protection benefit is payable for up to 2 years unless you are able to return to work sooner or until you turn 65, whichever happens first. If you are aged between 65 and 70 years, the benefit payment is payable for up to 52 weeks for injury or 12 weeks for sickness or the date you turn 70 (whichever occurs first). Benefits are payable after a 30 (calendar) day waiting period.
This Income Protection Insurance is exclusive to AMIST Super. It is a great opportunity to give you and your family genuine peace of mind.
What do you need to do now?
If you’re a manual worker¹ and you’re happy with the standard 5 units of cover, you don’t have to do anything. Your cover will start automatically.
If you’re an officer worker² and you’re happy with the standard 5 units of cover, and you have not advised us that you are an office worker, please complete the “Office Worker application declaration” form (PDF 671KB) and send it back to us as Office Workers receive reduced insurance premium rates. Otherwise, we will assume you are a manual worker. Either way, your cover will automatically start.
If you want to increase your level of cover, please complete the “Application to increase Income Protection” form (PDF, 662KB) and send it back to us.
If you don’t want Income Protection Insurance you will need to advise us in writing, specifying that you do not wish to be covered for Income Protection Insurance. Please ensure that you sign the letter.
If you wish to make a claim, go to our Make a Claim page.
This is exclusive to AMIST Super members
This Income Protection Insurance is exclusive to AMIST Super. It is a great opportunity to give you and your family genuine peace of mind. For full details of this Income Protection Policy, please refer to the Insurance Guide, or call the AMIST Super Hotline on 1800 808 614.