Death and TPD
Death and Total and Permanent Disability (TPD) cover can assist you to provide for the financial security of you and the people who depend on you if you die or are permanently prevented from working due to illness or injury.
Benefits are paid as a lump sum which can help:
- provide you or your dependants with an amount to contribute to the payment of living expenses
- repay your debts; and
- cover the cost of changes to your house and/or car (in the case of TPD benefits).
The amount of cover you’re eligible for varies between lifePLUS auto cover and lifePLUS choice cover. lifePLUS auto cover gives you ready access to a default level of cover, subject to limits. lifePLUS choice cover gives you flexibility to adjust your cover to suit your circumstances.
Both offerings allow members who are under 55 years of age to transfer cover from other super funds or insurers into lifePLUS choice cover, subject to maximum limits and terms and conditions.
Age-based Death and TPD cover
Age-based Death and TPD cover is higher at the point where people typically face costly life events, such as starting a family or buying a home.
Death and TPD cover decreases in later years as a person’s contributions to their superannuation and financial resources typically increase, and mortgages also typically decrease.
Eligible lifePLUS auto cover members will automatically receive aged-based levels of Death and TPD cover. If you change your cover, you will automatically be converted to lifePLUS choice cover.
Upon application for lifePLUS choice cover, you can choose aged-based Death and TPD cover, which follows the same scale as lifePLUS auto cover members.
If you have a fixed level of Death and TPD cover, you can switch this to age based cover at any time. If your current level of fixed cover is less than the applicable age based cover, you will need to apply and be underwritten for the increase in cover. In all other cases we will automatically apply the requested change.
Fixed Death and TPD cover
If you hold lifePLUS auto cover, you can choose to fix your current cover or apply for additional fixed cover at any stage through underwriting. By doing this, you will transfer to lifePLUS choice cover.
Transferring Death and TPD cover
If you hold Death and TPD cover with other superannuation funds or insurers, you may be able to consolidate your Death and TPD cover amounts, subject to conditions which include:
- you must be under 55 years old and an Australian resident
- you can transfer a maximum of $1 million per transfer, and $2 million in total
- you cancel your cover with the other super fund/s or insurer/s; and
- you satisfactorily complete the Transfer of cover form which is accepted by the insurer.
There are a number of other restrictions and eligibility conditions that apply to a transfer of cover. You can view the full list of terms and conditions and apply to make a transfer by completing the Transfer of insurance cover form.
Terminal Illness benefits
As part of your Death and TPD cover, members are eligible for a Terminal Illness benefit. The amount paid is equal to your level of Death Cover.
To apply for a Terminal Illness benefit, you must suffer a Terminal Illness, which means:
- you suffer from an illness, or have incurred an injury, which two Medical Practitioners have certified, jointly or separately, and in the opinion of the insurer, is likely to result in your death within 24 months from the date of the certification (the “certification period”) regardless of any reasonable treatment undertaken; and
- at least one of the Medical Practitioners is a specialist practicing in an area related to the illness or injury suffered by you; and
- the certification period has not ended for each of the certificates.
When your cover ceases
Your Death and TPD cover will cease on whichever of the following events happens first:
- you turn 70
- your claim for, terminal illness or TPD benefits is paid (unless your Death cover is higher than your TPD cover then the remaining Death cover will continue)
- you die (if you had previously been paid a TPD benefit, this amount would have previously deducted from your total death benefit)
- you stop being a member of PSSap
- 60 days from the date that your full premium amounts are not paid when they fall due
- you are a non-resident of Australia and permanently leave, or are no longer eligible to work in Australia
- you cease employment with an eligible employer and do not meet the conditions to retain your cover (currently, cover ceases 60 days after you cease eligible employment)
- we receive written notice that you want to cancel your cover; or
- we terminate the policy with the insurer (we will give you 30 days’ notice before doing this).
Exclusions and restrictions
No benefit will be paid for Death or TPD caused (wholly or partly, directly or indirectly):
- as a result of any intentional, self-inflicted act, while either sane or insane, where Limited Cover applies, or within 13 months from the date of acceptance of any underwritten cover; or
- by active service in the armed forces or peacekeeping forces (whether armed or unarmed) of any country or territory or foreign or international organisation; or
- through participation in a combat or fighting force of any country or territory or foreign or international organisation.
Cancelling lifePLUS cover
You can choose at any stage to cancel Death and TPD cover for both lifePLUS auto cover and lifePLUS choice cover. You can choose to cancel your Death and TPD cover or your TPD cover, however you cannot retain TPD cover only.
Think carefully before you do this, however, and consider that if you decide to take up Death and TPD cover again in the future, you will need to apply (including any previously transferred cover) and undergo underwriting.
If you wish to cancel your lifePLUS cover, please call us on 1300 725 171 to request a copy of the Cancellation of Cover form.