• Better, cheaper insurance from 1 July 2018

    We’re excited to tell you about some great changes we’ve been able to make to your insurance.

    We regularly review our service to members to find ways to lower costs and deliver value. Last year we undertook an extensive review of our insurance arrangements and as a result we’re pleased to advise that MetLife will be our insurer from 1 July 2018.

    Key benefits include:

    tick Further premium reductions for same levels of cover for death and TPD of up to 13%.
    tick New occupation categories of ‘white collar’ and ‘professional’ will become available.
    tick You can now transfer your existing income protection cover from your other superannuation accounts to VicSuper.

    Most importantly you DON’T NEED TO DO ANYTHING if you’re happy with your current level of cover as the transition to the new insurance provider, MetLife, will happen seamlessly on 1 July 2018.

    Of course you can make changes to your insurance at any time, including increasing, reducing or cancelling cover. Please contact us if you would like to make changes to your existing cover.

    MetLife

    We’re confident MetLife has the scale and experience to deliver great outcomes for our members. MetLife is a 150 year old company with over 65,000 employees worldwide. They’re one of the top group insurers in Australia insuring more than 2,600,000 Australians. In 2017 MetLife paid out $485,000,000 in benefits to Australians.

    Claims

    What happens with a current claim?
    No need for concern, we’ve got you covered.
    If you’ve submitted a claim, it will continue to be dealt with under the current insurance arrangement.

    If your claim is unsuccessful, you’ll automatically transition to the new insurance cover.

    If you’re currently receiving payments for income protection they will continue through AMP until you return to work or the period for which you were covered expires.

    Claims made after 1 July 2018
    Claims made for events that occur on or before 30 June 2018 will generally be assessed under the existing insurance arrangement.
    Claims made for events that occur on or after 1 July 2018 will generally be assessed under the new insurance arrangement.

    Better, cheaper insurance from 1 July 2018

    We’re excited to tell you about some great changes we’ve been able to make to your insurance.

    We regularly review our service to members to find ways to lower costs and deliver value. Last year we undertook an extensive review of our insurance arrangements and as a result we’re pleased to advise that MetLife will be our insurer from 1 July 2018.

    Key benefits include:

    tick Further premium reductions for same levels of cover for death and TPD of up to 13%.
    tick New occupation categories of ‘white collar’ and ‘professional’ will become available.
    tick You can now transfer your existing income protection cover from your other superannuation accounts to VicSuper.

    Most importantly you DON’T NEED TO DO ANYTHING if you’re happy with your current level of cover as the transition to the new insurance provider, MetLife, will happen seamlessly on 1 July 2018.

    Of course you can make changes to your insurance at any time, including increasing, reducing or cancelling cover. Please contact us if you would like to make changes to your existing cover.

    MetLife

    We’re confident MetLife has the scale and experience to deliver great outcomes for our members. MetLife is a 150 year old company with over 65,000 employees worldwide. They’re one of the top group insurers in Australia insuring more than 2,600,000 Australians. In 2017 MetLife paid out $485,000,000 in benefits to Australians.

    Claims

    What happens with a current claim?
    No need for concern, we’ve got you covered.
    If you’ve submitted a claim, it will continue to be dealt with under the current insurance arrangement.

    If your claim is unsuccessful, you’ll automatically transition to the new insurance cover.

    If you’re currently receiving payments for income protection they will continue through AMP until you return to work or the period for which you were covered expires.

    Claims made after 1 July 2018
    Claims made for events that occur on or before 30 June 2018 will generally be assessed under the existing insurance arrangement.

    Claims made for events that occur on or after 1 July 2018 will generally be assessed under the new insurance arrangement.

What’s changing?

Cheaper Death and TPD premiums

Unit based cover - which most insured members have is where the most significant savings occur.

Unit based Death and TPD cover under ‘general’ occupation has reduced from a weekly premium of 96 cents per unit to 83.5 cents per unit. This is a 13% reduction in premium on top of the 10% provided last August, representing a total reduction of approximately 22% since 1 July 2017.

Fixed cover - Death and TPD premiums will reduce by 6% on average.
Income protection – In recent year’s income protection premiums have increased as a result of increasing claim volumes. We are pleased to confirm that VicSuper income protection premiums will remain the same.

View latest premiums (PDF)

New occupation categories

We have reviewed our occupation categories. From 1 July 2018 the categories available are:

  • General
  • White collar
  • Professional
  • Own occupation
Some of these occupation categories will be replacing existing categories. You will automatically move across on 1 July 2018, as shown in the table below.
Occupation category - prior to 1 July 2018  Occupation category – from 1 July 2018
General  General 
Approved White collar
(not available)  Professional 
Own approved
Own occupation 
If you currently hold a combination of ‘general’ and ‘approved’ occupation categories, you’ll automatically be transferred to the ‘white collar’ category for both, giving you the best value premiums.

Applying for new occupation category

Occupation categories have different insurance premiums to reflect the risk associated with your occupation. The ‘white collar’ and ‘professional’ categories have a reduced premium cost, compared to the ‘general’ category.

If you meet the eligibility criteria in the occupation questionnaire below, you may apply for a different occupation category, from 1 July 2018. To find out more, refer to the Insurance handbook available from 1 July 2018.

Occupation questionnaire
1. Are the duties of your regular occupation limited to either:
a) professional, managerial, administrative, clerical or similar ‘white collar’ duties which are undertaken in an office environment for at least 90% of your regular working hours, or managerial duties within an educational institution (i.e. school principal or deputy principal)?
or
b) educational duties performed within a school or other educational institution (other than a school principal or deputy principal)?

2. Is the Income* you earn from your occupation greater than $100,000 per annum?

3. Do you:
a) hold a tertiary qualification or are you a registered member of a professional institute or governing body in relation to your profession?
or
b) work in a management role?

General
White Collar  Professional 
Answering ‘no’ to Question 1.
Answering ‘yes’ to Question 1.(a) but ‘no’ to question 2 or both parts of Question 3;
or
answering ‘yes’ to Question 1.(b) 
Answering ‘yes’ to Question 1.(a) and Question 2 and either part of Question 3.
Note, members who answer ‘yes’ to Question 1.(b) are not eligible for the “Professional” occupation scale

Fixed cover only - Tapering of TPD benefits for age 60 – 70

Tapering refers to how the benefit for TPD cover is reduced overtime once you reach age 60.

Under the current arrangement the tapering rate is 1/60th per month from age 60 to age 64, reducing to 20% of the policy value. The rate remains at 20% until age 70 at which time the TPD cover will cease.

From 1 July 2018, under the new arrangement, tapering is at the rate of 10% per annum commencing at age 61 through to age 68. This is a positive change for members, as all fixed cover TPD members will have an increased benefit until age 68, when it will have reduced to 20%. As with the current policy TPD Cover ceases at age 70.

New Tapering rates
Age last birthday
Your TPD benefit is reduced by
61  10% 
62 20% 
63 30% 
64  40%
65 50%
66  60%
67  70% 
68 80%
69 80%
70 Cover expires 

Transfer of insurance cover from other super funds

If you have death, TPD or income protection cover held under another super or self-managed super fund, you can apply to transfer that cover to your VicSuper account.
There are limitations on the acceptance of cover, including where you have existing loadings or exclusions.

To find out more, just refer to the Insurance Handbook on our website that will be issued on 1 July 2018 for terms and conditions.

Overseas cover

Currently, if you live overseas, you can only be insured for up to three years, with a further three-year extension, that is subject to approval.

From 1 July 2018 your cover will continue indefinitely while you’re overseas provided there’s enough money in your super account to pay premiums.

Eligibility for automatic cover

Currently if you join a participating employer and choose not to join VicSuper, you can’t obtain default cover if you subsequently decide to choose VicSuper, while working for that same employer.

From 1 July 2018, subject to meeting eligibility requirements you will be able to obtain default cover upon electing VicSuper, while still working for the same employer.

Special offer period extension

For new EmployerSaver members joining from 1 July 2018, the special offer period has been extended from 60 days to 90 days. This means, you will have 90 days to decide if you would like to retain your default cover. If you decide during this period that you don’t wish to have all or part of the insurance, you may cancel it and receive a full refund of premium.

Extra changes to your death only and Death and TPD insurance

TPD Maximum benefit

The maximum benefit for TPD paid under the unable to work definition has been increased from $3.09 million to $5 million.

Full time employee definition

You’ll now be considered a full time employee where you have worked an average of 14 hours or more in a normal working week in the three months prior to the date of total and permanent disablement. Previously this was 14 hours or more per week in the 12 months prior to the date of total and permanent disablement.

Extra changes to your income protection insurance

Subsequent illness or injury while receiving income protection payments

Under the current arrangement, if a second disabling condition happens while you’re off work receiving benefits, you will not be able to claim for the second condition until you’re no longer disabled under the initial condition you received your income protection benefit for.

From 1 July 2018, there’ll be no need to return to work in order to continue receiving benefits for a second disabling condition. Instead, the benefit will continue to be paid as a single ongoing claim.

Failure to return to work

Under the current arrangement, members will have their income protection benefit payments suspended if they don’t take all reasonable steps to return to work. From 1 July 2018, income protection benefit payments will no longer be suspended and a reduced benefit will still be payable. The benefit will be reduced by the income that would have been received, had the member taken all reasonable steps to return to part-time work.