Default Cover

Default Death and Total & Permanent Disablement (TPD) Cover is automatic insurance cover for eligible members if you die or become totally and permanently disabled (Death and TPD). For employer sponsored members, Default Cover generally commences on the day you join your employer, provided we receive a contribution within 180 days. Personal members must apply to receive cover. Eligible members will automatically receive six units of Death and six units of TPD cover.

How default cover works

Amy’s age next birthday is 35 when she joins Kinetic Super, and is in a White Collar occupation. If Amy were to die her beneficiaries will receive an insured amount of $167,400 or if Amy become totally and permanently disabled (as defined in the policy), she’ll receive an insured amount of $361,800. These amounts are additional to any account balance Amy may have.

The cost of this cover is $1.26 per week for death cover and $1.62 per week for TPD cover and is deducted from Amy’s super account each month.

For details on the cover and premiums view the charts below.

Standard Premiums White Collar Premiums

Additional cover

Additional Cover lets you purchase insurance cover to suit your needs, which is additional to your Default Cover. The amount and cost of Additional Cover received for each unit depends on your age next birthday and occupational category and therefore will change as you get older. 

To apply for Additional Cover, simply apply online through Member Online Services or complete the Insurance Application and Personal Statement. 

How additional cover works

Amy’s age next birthday is 35 and she is a white collar worker. Amy has chosen to apply for an additional five units of Death Cover and five units of TPD cover. Her Additional Cover would be calculated as:

Death: 5 units x $27,900 per unit = $139,500
TPD: 5 units x $60,300 per unit = $301,500

The cost of this cover is $1.05 ($0.21 x 5) per week for the additional death cover and $1.35 ($0.27 x 5) per week for the additional TPD cover and is deducted from Amy’s super account each month.

 

 

All employer default funds are legally required to offer life insurance cover – they just differ on prices and policy features. When you join, a certain amount of life cover may be automatically available to you without any health checks required (if you’re eligible of course).

1. Tell us what sort of work you do

Your premiums are calculated using your age and occupation, so it’s important to check that this is correct.

With Kinetic Super, we’ll automatically place you into the ‘Standard’ Occupational Category unless you tell us otherwise. However, if you spend most of your day in the office, with no manual work, you will need to let us know, as the ‘White Collar’ Occupational Category may better reflect your circumstances (plus premiums are less). Click here for more details on our two Occupational Categories.

To update your Occupational Category details, log in to your online account and then click the Personal Details section.

2. Review your insurance cover 

If you’re eligible, insurance cover can pay you a set amount of money if you die, suffer a terminal illness*, or become Totally and Permanently Disabled (TPD). You can cancel or change your cover at any time. To cancel, please complete the Insurance Cancellation form or for any changes or further help contact us.
If you join Kinetic Super yourself (rather than being joined by your employer), you are a "personal member" and must apply for cover.

*The benefit paid for terminal illness will be equal to the death benefit at the time of terminal illness or $1M (whichever is lesser).

3. Consider if you need additional cover

We also offer income protection cover as an optional extra at an additional cost. This provides you with an income if you are unable to work due to total and partial disability because of illness or injury. This covers you for up to 85% of your pre-disability income, up to 75% is payable directly to you and 10% is paid to Kinetic Super as an additional super benefit. You can apply for this cover at any time. 

4. Nominate who you’ll leave your money to 

Who will you leave your super to if you die? It’s up to you to nominate. You can make this legally binding or not. The difference is if it’s legally binding we must pay out the money according to your nomination**.

To make a legally binding nomination, you will need to complete a Beneficiary Nomination form.

To make a non-legally binding nomination, simply log in to Member Online Services. You can make, revoke or amend beneficiaries at any time.

 

* Keyll, Dr Simon and Ngu, Dr Vu Quoc, February 2010, The Lifewise/NATSEM Underinsurance Report, Understanding the social and economic cost of underinsurance.

** Subject to superannuation law.

Why insure through super?

  • It's often cheaper than buying it yourself directly
  • It's easy to manage because premiums are automatically deducted from your super account

 

Income Protection

Income Protection (IP) provides you with an income if you are unable to work due to total but temporary illness or injury. IP covers you for up to 85% of your pre-disability earnings, 75% is payable directly to you and 10% is paid as a super contribution to Kinetic Super.

IP cover has a waiting period that determines how long you need to wait, from when you stop working, before a benefit will be paid to you. There are three waiting periods available: 30, 60 or 90 days.
Payment periods also affect the cost of your IP cover. The payment period is the length of time that you will receive payments in the event that you are disabled. You can choose a payment period of 2 years, 5 years or to age 65. The longer the payment period, the higher your insurance premium.

The cost of IP cover depends on your age, amount of cover, your chosen waiting period, benefit payment period and your occupational category. All premiums are deducted from your Kinetic Super account. View the IP Premiums.

To apply for IP please log in to Member Online Services. Alternatively you can complete the Insurance Application and Personal Statement form and send back to us.

Special arrangements for new members

Eligible members may apply within 120 days of the date of their Welcome Letter for Income Protection insurance without having to provide underwriting. The rules regarding this special arrangement are:

  • The cover amount cannot be more than the Automatic Acceptance Limit (AAL) of $60,000 per year for White Collar members or $36,000 per year for Standard members
  • A 90 day waiting period and a 2 year benefit payment period will apply
  • If you want an amount of cover higher than the AAL or a different waiting period or benefit payment period, this special offer cannot proceed and you will need to complete a standard application

How IP works

Amy’s age next birthday is 35, she’s a White Collar worker and decides to take IP cover of $48,000 per annum based on a 90-day waiting period and a two-year payment period. Based on the table on page 15, Amy’s annual premium would be $74.40. Premiums will be deducted from Amy’s super account each month.

Income protection Premiums