New insurer TAL takes over
As at 1 June, 2017, TAL is ‘on risk’ for claims made by NGS Super members. Any claims relating to accidents or illness prior to that date will be assessed by the previous insurer, CommInsure. It was only after considerable research and professional advice that the Trustee took the decision to move to TAL as the provider of Death, Total and Permanent Disability, Terminal Illness and Income Protection insurance. The transition has been smooth and staff members are excited to be working with the highly professional team at TAL which insures over 3.7 million Australians.
Some important features of the new policies which are good to know include:
• Eligible members can receive up to 90% of pre-incapacity salary as an Income Protection benefit for up to five years. This includes an up to 10% payment into super maintaining your contributions.
• A needs based insurance package changes benefit values and premiums with your age leading up to retirement.
• Members must be in ‘active employment’ on the date the NGS Super cover starts (1 June 2017). If you are not in ‘active employment’ on the date of change ‘limited cover’ applies until you have been in ‘active employment’ for a period of two months. ‘Active employment’ means that you are employed to carry out identifiable duties, you are actively performing those duties and in TAL’s opinion you are not restricted from carrying out those duties for at least 35 hours a week, or the duties of your usual occupation, even if you are then not working on a full time basis. In addition an employer contribution must be received by the Fund within 120 days of you joining NGS Super.
• Cover can be increased using a special offer where limited or no health evidence is required if you apply within 120 days of joining the Fund. You can reduce or cancel your cover at any time. If cover is cancelled, future applications for insurance will not be automatic and will be subject to medical evidence at the discretion of the insurer.
• You can apply for extra ‘Life Event’ cover when events such as the birth of a child, taking out a mortgage for the purchase of a first home or a divorce happen. Simply complete the Life Event application through Member Online account within 90 days of the life event to apply to have your insurance upgraded.
• Other insurance from a retail insurer or from another superannuation fund can be transferred into NGS Super subject to certain conditions such as “active employment” (see the Insurance Guide). If you do apply to upgrade your insurance cover, ‘Interim Accident Cover’ will generally apply from the date TAL receives your application.
• TAL has the digital capabilities to enable members to lodge a claim online or over the telephone.
Although it may be argued that insurance offered through superannuation is not a ‘core’ function, the universal cover provided through Australian industry funds provides insurance for millions of workers who would otherwise remain uninsured. In times of illness and/or accident, it’s comforting to know that most of your salary can be maintained (for a period) or a lump sum benefit is available to alleviate the bills.
And some more excellent news for NGS members – SuperRatings has awarded NGS Super its 12th consecutive Platinum Rating which recognises the Fund as a ‘best value for money’ superannuation fund.
Bernard O’Connor
NGS Super
Important information: The information in this article is general information only and does not take into account your objectives, financial situation or needs. Before making a financial decision, please assess the appropriateness of the information to your individual circumstances, read the Produce Disclosure Statement for any product you may be thinking of acquiring and consider seeking personal advice. Past performance is not a reliable indicator of future performance. Any opinions are those of the author and do not necessarily reflect the view of NGS Super.