Rest Super: Life Insurance Coverage And Your Options

Rest Super offers three types of insurance: Income Protection (IP), Total and Permanent Disability (TPD), and Death Cover. When you join Rest Super, if you're aged 25 or over with a balance of at least $6,000 in super, you're automatically covered by their insurance package. This package includes Default Cover for Death, TPD, and IP, which provides financial protection for you and your loved ones in the event of unforeseen circumstances. For those under 25 or with a balance below $6,000, the option to opt into this protection is available.

Default Cover

The IP cover provides an income stream if you are unable to work for an extended period due to injury or illness. The TPD cover provides a lump-sum benefit if you become totally and permanently disabled due to sickness or injury. Lastly, the Death cover provides a lump-sum payment or pension to your beneficiaries upon your death.

Rest Super's Default Cover is designed to be flexible and affordable. You can tailor the cover to suit your specific needs and increase your level of cover at any time. Additionally, Rest Super offers a range of options to enhance your insurance package, such as increasing your cover by providing additional health information or transferring insurance from another super fund or insurer.

It is important to note that the availability of Default Cover depends on your eligibility. If you are 25 or older with a super balance of at least $6,000, you are automatically covered by Rest Super's insurance package. Otherwise, you have the option to choose this protection.

Death Cover

In addition to the lump sum payment, death cover can also provide an income stream for your beneficiaries. This is known as a pension and can help support your loved ones over a longer period of time.

At Rest Super, we offer Death Cover as part of our default insurance package, which also includes Total and Permanent Disability (TPD) cover and Income Protection (IP) cover. Our default cover is available to all eligible members, regardless of their occupation, and can be tailored to suit your individual needs.

With Rest Super, you have the option to increase your level of Death Cover at any time, subject to underwriting and approval by the insurer. We also offer a range of other options to help you tailor your insurance cover, including special offers to increase your cover, voluntary cover options, and the ability to transfer your existing cover from another super fund or insurer.

Total and Permanent Disability (TPD)

The Rest Super Default Cover is a simple, affordable insurance package that includes TPD insurance, available to all eligible members regardless of their occupation. The Default Cover can be increased by choosing from a range of options, such as increasing the cover without providing health information, with limited underwriting, or with full underwriting. Additionally, insurance from another super fund or insurer can be transferred into the Rest Super account.

The amount of the TPD benefit is typically a fixed percentage of the policyholder's average wage or, in some cases, the average wage of individuals in a specific geographical region. There is a limit on the number of weeks that the benefit is paid out, which is generally determined by when the policyholder turns 65 or reaches full retirement age under Social Security. In some policies, benefits may also be available for a period after the policyholder returns to work.

To qualify for TPD benefits, an individual must be unable to work due to their injuries. The disability must be permanent and total, indicating that the individual may never be able to work again. Insurance companies classify disabilities as temporary or permanent and pay out benefits accordingly. Temporary disabilities are further classified as temporary partial disability, preventing full-time work, and temporary total disability, preventing any work for a period of time. Permanent disabilities are classified as permanent partial disability, preventing full-time work for the rest of the individual's life, and permanent total disability, meaning the individual will never work again.

Income Protection (IP)

Rest Super's IP cover is intended to provide you with a monthly income benefit to replace up to 77% of your pre-disability income if you have an extended absence from work due to sickness or injury. There is also an additional amount of up to 12% of this monthly income benefit to replace the super contributions that your employer would otherwise provide. This helps to protect your retirement savings.

The default level of Rest Super's IP design is based on the generally low salaries of members who work in the retail industry. This helps to improve the affordability of premiums and reduces the chance of providing a member with more IP cover than they could claim. The level of IP is flexible, and members can apply for a higher level of cover (up to 77% of their salary, plus 12% of the monthly income benefit for super). The level of default IP increases over time, similar to the earnings of a typical Rest member (whether they are a full-time, part-time or casual employee). Cover is generally lowest at younger ages and increases as members get older and their salaries are likely to increase. It then decreases again as members near retirement.

In addition to having the flexibility to change the level of IP cover, members can also change the waiting period and the benefit payment period at any time. Any changes that are accepted will only apply to claims with an incident date before the changes. Any changes to IP cover will result in changes to the premium paid for cover.

To be eligible for an IP benefit, you must be medically certified as being unable to work for longer than your waiting period (typically 60 days) and meet the other eligibility criteria in the policy. If you are eligible to receive an IP benefit, the first monthly income benefit will be paid directly to you by Rest’s insurer. The first monthly income benefit is usually made at least one month after the waiting period has finished. IP benefit payments are assessed on a monthly basis and will continue to be paid until you can reasonably be expected to return to your usual job, however, this benefit can only be made for a maximum period of time.

If you make an IP claim and are approved, you might be receiving or entitled to other amounts, like sick leave or workers' compensation, for the same injury or illness. These amounts are treated as 'benefit offsets' as they are factored into your IP claim and could reduce the amount of IP benefit you receive.

Life Stage Cover

Life is full of surprises, and insurance is a way to protect yourself and your loved ones from the unexpected. As you go through different life stages, your insurance needs will change. It is important to review your insurance coverage regularly to ensure that it aligns with your evolving needs and life stage.

When you are young and single, your insurance needs may be minimal, especially if you have no dependents or liabilities. However, if you have an education loan or are supporting your parents or siblings financially, you may want to consider insurance to cover these financial commitments.

As you enter the next stage of life and start a family, your insurance needs will increase. You will want to ensure that you have enough cover to support your partner and children, especially if you are the primary or sole breadwinner. This is also a crucial time to consider insurance that will cover the future costs of raising your children, including their education.

When you are in your middle age and your children are in college, your insurance needs will continue to be high. You will need to protect your income and cover any outstanding loans. Even if your outstanding loans have reduced, it is advisable to continue with your existing insurance plans to account for inflation.

As you approach retirement, your insurance needs may decrease as your financial responsibilities reduce. However, you may still want to maintain some life insurance, especially if you do not have funeral cover or if you would like to leave a legacy for your loved ones.

At each life stage, it is important to review your insurance coverage and make any necessary adjustments. This will ensure that you have sufficient coverage for your current needs and peace of mind knowing that your loved ones will be taken care of.

Frequently asked questions