At Aware Super, we provide automatic death and total and permanent disablement insurance for eligible members with the flexibility to decrease or cancel this cover.

Members can also apply for voluntary insurance including income protection insurance.

If you’re eligible for insurance through Aware Super, you can apply to transfer any Life, Total and Permanent Disability (TPD) or Income Protection (IP) insurance you have with another super fund or insurer, even if you don’t yet have this insurance with us.

We’re always looking for ways to improve our insurance arrangements. That’s why we’ve opted in to the Insurance in Super Voluntary Code of Practice (the Code).

The Code is an industry-wide initiative to improve the cover provided by super funds to their members. We already meet many of the Code’s requirements and have now developed a plan to deliver the remaining improvements.

Show the Insurance in Super Voluntary Code of Practice

Show Aware Super Transition plan

Our Insurance Strategy

 

The Aware Super Insurance Strategy outlines the approach we take with regards to designing insurance benefits offered to our members. Our insurance philosophy is to provide our members with an adequate level of cover for a reasonable premium without eroding their retirement income.

When determining the types of cover, level of benefit and premium, we consider a number of factors to ensure that the cost of insurance is appropriate. Our priority is to help our members maximise wealth accumulation for retirement.

Our default death (including terminal illness) and total and permanent disablement (TPD) insurance cover is designed to meet the needs of our general membership. In addition, members can also apply for Income Protection cover to replace up to 75 per cent of their monthly income.

The following insurance design principles guide us in developing and undertaking reviews of our insurance arrangements:

Affordable
  • As a signatory to the Code we seek to ensure premiums paid by members for insurance cover provided automatically does not exceed 1% of the average salary for that group of members.
  • We seek to improve the health of our members where possible with an emphasis on prevention, early intervention and return to work strategies to keep cover affordable for all members.
Appropriate
  • Our default cover provides a critical safety net of cover at an affordable cost that would meet the reasonable needs of most members. Our priority is to help our members maximise wealth accumulation for retirement.
  • Where scale allows, we design our cover to meet the needs and relevance of each employment sector.
Simple
  • We seek to keep our design simple and intuitive to understand for our members.
  • We provide members guidance and access to a range of advice to assist in reviewing their insurance and further tailoring their cover to meet their individual needs.
  • We make it simple and effortless for members to change their cover based on their needs.
Fair
  • We treat existing and new members equally.
Competitive
  • We seek to ensure our insurance offer and premiums are attractive to new and existing members to help the fund grow and leverage the benefits of scale for members.

Our aim is to keep the cost of automatic cover under 1% of the average salary of default members.  We undertake regular reviews of the cost of annual insurance premiums for members with automatic insurance cover across ages. As we do not have members’ individual salary details, we estimate member’s average salaries using their Super Guarantee (SG) contributions over a 12 month period.

The June 2020 insurance affordability review found that the cost of automatic insurance is under 1% on an average estimated salary basis for 99.9% of members. A small number of members between the ages of 17 and 19 exceed the 1% of salary affordability benchmark due to lower salaries and/or type of work. Where members may exceed the 1% of salary affordability benchmark on an average estimated salary basis, Aware Super provides additional communication to these members to prompt them to review the appropriateness of their insurance cover based on their personal circumstances.

Members can learn more about our insurance offer through our Product Disclosure Statements, Key Facts Sheet and Quick Reference Guides.

All members have access to online tools to check their existing level of insurance, assess and calculate their insurance needs and to apply for, or update their cover.

Members at any point in time can amend their cover to meet their individual circumstances by:

  • increasing or decreasing their level of cover
  • cancelling full or part of their insurance cover
  • fixing the amount of their insurance cover (i.e. so it does not change with age)
  • transferring other cover to their Aware Super account
  • applying for an individual insurance occupational rating
  • increasing their cover by applying for Start-up bonus offer (where available)
  • increasing their cover by applying for additional Life event cover

All changes to insurance cover can be done online or by paper forms, providing members the flexibility to choose the channel which best suits them.

Aware Super provides eligible sworn NSW Police Officers with compulsory death (including terminal illness), TPD and Income Protection cover in line with the requirement of the Police Act (1990). This insurance cover has been designed to best suit the needs of sworn police officers.

Generally, a sworn Police Officer’s occupation is considered riskier than other occupations, which may make it harder for these members to obtain life insurance outside the fund.  Aware Super has therefore elected to apply a ‘dangerous occupation exception’ for eligible sworn NSW Police Officers and provides them with automatic insurance cover and/or compulsory PBRI insurance even if they are under age 25 or have an account balance under $6,000.

Aware Super offers compulsory death (including terminal illness) cover to NSW Ambulance Officers in line with the relevant Award requirements. Aware Super recognises an ambulance officer’s occupation is considered riskier than other occupations and has elected to apply a ‘dangerous occupation exception’ for NSW Ambulance Officers.

Eligible members receive automatic insurance cover and/or compulsory Ambulance Officers’ Insurance even if they are under age 25 or have an account balance under $6,000.

Our Premium Adjustment Arrangements

 

Aware Super maintains two different premium adjustment mechanisms related to the insurance provided to our members.  These premium adjustment mechanisms are sometimes known as profit shares or experience adjustments. 

The intent of these arrangements is to return a portion of premiums where the number or value of claims is better than the Insurer expected in their pricing. Generally, the adjustment amount is used to:

  1. Reduce premiums for members; or
  2. Refund overpaid insurance premiums.

For the personal/employer sponsored Aware Super insurance arrangements, any entitlement to a premium adjustment amount is paid into the Insurance Reserve maintained by the Fund and governed by our Insurance Reserve Policy.

For the Police Blue Ribbon Insurance (PBRI) arrangements, the amount, if any, is used to reduce future premiums by offsetting against premiums that would otherwise be payable.