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.
- 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)
We have reviewed our occupation categories. From 1 July 2018 the categories available are:
- White collar
- 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
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.
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.
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)?
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?
b) work in a management role?
|Answering ‘no’ to Question 1.
|Answering ‘yes’ to Question 1.(a) but ‘no’ to question 2 or both parts of Question 3;
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
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
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.
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.
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.
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.