Membership Guide - SuperFacts.com

Section 5 – Your insurance coverInsurance cover is an important part of your Lutheran Superbenefits, helping to give you or your family financial securityin case something unexpected happens. You can chooseyour level of insurance cover (if you are eligible) to be sureyou have the amount of cover that’s right for you. Oursize gives us buying power to gain competitive insurancepremiums and pass the cost savings onto you.Lutheran Super provides different types of insurance,because misfortune can take different forms, from sicknessto permanent disability and, of course, death.Members eligible for automatic cover will be provided withthree units of death and TPD cover.If you are a standard member, you can apply for three extraunits of death and total and permanent disability coverwithout having to provide evidence of good health within60 days of starting your employment with a participatingemployer, provided you meet at work requirements (seecall out box on page 10 for details). You can nominateyour desired level of cover in Step 3 of the Application formembership form.Lutheran Super offers:• Income protection (IP) cover giving a monthly benefit incase you become sick or injured and can’t work• Total and permanent disability (TPD) cover givinga lump sum benefit if you become totally andpermanently disabled• Death cover which gives your dependants or yourestate a lump sum payment in addition to your superaccount balance• Cover for terminal illness which allows for early paymentof a death benefit• Lifestyle events cover which allows members under age55 to request an increase in death and TPD cover (withinlimits) within 60 days of a lifestyle event occurring,without health evidence.The insurance cover you may be eligible for depends onyour membership. If you are provided with cover, you’recovered 24 hours a day, 7 days a week. Table 2 showsthe cover that may apply to you and your options. If youare eligible to receive basic cover, it will commence fromthe first day you are accepted as a member of the Fund.You can request to increase or decrease your level ofinsurance cover or apply for cover if you don’t have it, at anytime. You can request a different level of death and total andpermanent disablement cover.Insurance cover and your optionsYou have a choice of two ways to receive death and TPDcover through Lutheran Super:• Unit-based cover: where the amount of cover youreceive from one unit depends on your age nextbirthday. You receive less cover for each unit with everybirthday and the cost per unit is fixed.• Fixed cover: where the amount of cover is agreed andfixed but the premium increases with each birthdayafter your 30th birthday.You can also have a combination of fixed cover and unitbasedcover.Please note if you chose to rollover any funds to anothersuper fund you must retain an account balance of at least$5,000 in order for your insurance cover to continue.Table 2: Insurance cover at a glanceType ofinsuranceDeath(includingterminalillness) toage 70Are you eligible?(type of membership)Standard members (full-time orpermanent part-time employeesworking 15 hours a week or more)Casual employees or permanent parttimeemployees working less than 15hours a weekBasic level of insurance 1Three unitsCan I request extra insurance?Unlimited cover in either units or fixed amounts orboth, subject to meeting the insurer’s requirements. 2You have the option to increase your cover by upto three units without health evidence within 60days of starting employment with a participatingemployer.³Total andpermanentdisabilityto age 70Retained membersSpouse membersStandard members (full-time orpermanent part-time employeesworking 15 hours per week or more)Casual employees or permanent parttimeemployees working less than 15hours a weekRetained membersContinues at the same level as when youwere a standard member.Have the option to apply for cover.If provided, cover commences from the datethe insurer provides written acceptance ofthis cover.Three unitsThree units under a restricted TPD definitionUpon ceasing employment or exercisingchoice of fund, cover continues at thesame level as cover you received in yourprevious category. 5Unlimited cover in either units or fixed amounts orboth, subject to meeting the insurer’s requirements. 2Unlimited cover in either units or fixed amounts orboth, subject to meeting the insurer’s requirements.4Maximum of $3,000,000 in either units or fixedamounts or both. 2You have the option to increase cover by up to threeunits without health evidence within 60 days ofstarting employment with a participating employer.³Maximum of $3,000,000 in either units or fixedamounts or both. 2Spouse members Option to apply for TPD cover. 4If provided, cover commences from the datethe insurer provides written acceptance ofthis cover.8