Affordable insurance cover - how much do you need & do you have enough?

As a CONNECT Member you automatically receive 2 units of Death and Total & Permanent Disablement (TPD) cover, but you can also top up this insurance if you think you need more. It's an easy and convenient way to take out insurance - the cost comes out of your super account.

How much do you pay and what do you get in return?

CONNECT provides 2 units of insurance cover to all members automatically on joining. Your automatic cover of 2 units costs $2.06 per week.

For members who are under age 55, 2 units of cover provides:

• $72,000 of death cover, and
• $72,000 of TPD.

For members who are aged 55 to 64, 2 units of cover provides:

• $72,000 of death cover, and
• TPD cover that reduces each year, starting out at $66,000 at age 55 and reducing to $7,000 at age 64.

For members who are aged 65 to 69, 2 units of cover provides:

• $14,000 of death cover, and
• $7,000 of TPD cover.

At age 70 all cover ceases.

For most workers, and especially for those who have a family or others who depend on them financially, the default level of cover won’t be enough. So we provide you with the flexibility to increase your cover. Members are able to apply to increase their cover to a maximum of $2.88 million.

Members are able to upgrade their cover by taking additional units of $36,000. Each additional unit of Death & TPD cover is $36,000 for members under age 55. For ages 55 and over, cover reduces as you get older. Each additional unit costs $1.03 per week.

Reinstatement of Death & TPD at 25 and 30

We understand that some young members choose to opt out of insurance. But they can sometimes forget to reinstate cover as they grow older and take on more responsibilities. To ensure that all members are protected, we will reinstate default cover of 2 units at age 25 and, if you choose not to accept it, again at age 30, without requiring medical evidence. You have the option of opting out of both occasions. You will be notified prior to the relevant birthday and will be provided with a 60-day cooling off period. If you do not wish your cover to be reinstated, you will need to notify us in writing during the 60-day cooling off period.

Increased cover when life changes

We recognise that as members’ lives change in significant ways, their insurance needs may change as well. When one of the following Specific Life Events happens, members will now be able to add 2 units of Death & TPD cover (in any 12 month period) at a cost of $2.06 per week without the need to provide medical evidence:

• marriage,
• birth or adoption of a child,
• taking out a new mortgage of, or increasing an existing mortgage by, at least $100,000 for your principal residence,
• taking out or increasing an existing business loan by $100,000,
• starting a business, or
• increasing your interest in an existing business.

This gives you easy access to extra cover in specific circumstances. Members are able to use the Specific Life Event top up cover for a maximum of three life event increases during their membership of CONNECT. The top up is allowed only once for marriage.

For more information download the Member Product Disclosure Statement (PDS).  To apply for 2 units of Life Event top up cover fill out the Specific Life Events Insurance Form. To apply to increase your total cover up to and including $396,000 fill out the Insurance Application Form. To apply to increase your total cover over $396,000 fill out a Personal Insurance Statement.

CONNECT Death and TDP cover – at a glance

Units of cover	2 (default)	6	10	14	20	40	80
If you are under age 55
Death	$72,000	$216,000	$360,000	$504,000	$720,000	$1,440,000	$2,880,000
TPD	$72,000	$216,000	$360,000	$504,000	$720,000	$1,440,000	$2,880,000
Cost per week	$2.06	$6.18	$10.30	$14.42	$20.60	$41.20	$82.40
If you are age 55 to 64
Death	Same as above (i.e. $72,000 for default of 2 units of cover, scaling up to a maximum of $2.88 million or 80 units of cover).
TPD	Reduces each year, starting out at $66,000 for default of 2 units of cover at age 55 and reducing to $7,000 for 2 units of cover at age 64.
If you are age 65 to 69
Death	Default is $14,000 for 2 units of cover.  Each extra unit is $7,000 of cover. No cover applies from age 70.
TPD	Default is $7,000 for 2 units of cover. Each extra unit is $3,500 of cover. No cover applies from age 70.

Maximum cover is $2.88 million. All cover ceases at age 70.

How to take out additional cover

To apply to increase your total cover up to and including $396,000 fill out the Insurance Application Form. To apply to increase your total cover over $396,000 fill out a Personal Insurance Statement.

If you are applying for 2 units of Life Event top up cover, fill out the Specific Life Events Insurance Form.

Five factors to consider in selecting the level of cover that's right for you:

1. Personal situation
Do you have young children or others who depend on you financially?

2. Financial situation
Do you have a mortgage or other debts? Do you have other assets that you or your family could draw on if need be? Are these assets and your super enough? Do you have other insurance policies?

3. Age, health and risk level
Do you have any special health or risk factors from your occupation or recreational activities that you should consider? It is generally easier to apply for insurance when you are younger and, once approved, this insurance stays with you regardless of changes in your health and/or risk factors. Often, when people recognise the need for insurance, it can be too late.

4. Affordability
As your premiums are deducted from your CONNECT account, these costs may impact your retirement savings. On the other hand, obtaining cover through your super fund is generally more affordable than applying for cover as an individual. This is because CONNECT has negotiated special group rates that are typically much lower than those you could obtain yourself.

5. Changing circumstances
Usually your insurance needs will vary as your circumstances change. For example, if you marry and/or have children, or take on more debt, then typically your insurance needs increase. When your children leave home and are no longer dependant on you, or you build up more assets, your insurance needs may reduce.

Check out these case study examples*

	Case Study 1	Case Study 2	Case Study 3
Name	Callum Adams	Jon Copas	Tamara D’ Angelo
Age:	23	37	50
Situation:	Single, just finished apprenticeship and recently moved out of home.	Married, 2 kids (aged 9, 7), expecting a 3rd child. Big mortgage.	Divorced, 1 adult son aged 21, planning to retire at 57.
Cover Now:	Currently 2 units (default)	Currently 2 units (default)	Currently 6 units
New Cover:	Decides to increase to 10 units	Decides to increase to 40 units	Decides to reduce to 3 units
	To find out why, click here	To find out why, click here	To find out why, click here
* these are made up examples. We hope you find them useful.

Case Study 1

Callum Adams
Age 23

Single, just finished his apprenticeship and recently moved out of home.
Currently 2 units (default) – Decides to increase to 10 units

From the date of joining CONNECT Callum automatically had cover for $72,000 worth of death cover and $72,000 of TPD.

Callum is single and has no real debts (other than a big mobile phone bill!). Right now he is saving up for a new ute but after that he plans to put down a deposit on a house.  While the future’s looking good, Callum wants to make sure he’s protected in case he has a serious accident that leaves him permanently disabled. He works out that 10 units of cover ($360,000) would be enough to provide for him until age 60, if he was unable to work again.

When to change?

Callum plans to revisit his level of cover if he and his girlfriend decide to live together or get married or when he buys a house and takes on a mortgage.

(back to examples)

Case Study 2

Jon Copas
Age 37

Married with 2 kids (aged 9 and 7), expecting a 3rd child. Big mortgage.
Currently 2 units (default) – Decides to increase to 40 units

Jon too has $72,000 worth of death cover and $72,000 worth of TPD, simply because he’s never changed it from the CONNECT default.

With a third child on the way he and his wife Louise decide they’d better take a close look at the family finances. They decide to significantly increase Jon’s cover. They want at least enough to pay out the mortgage and set Louise up for 5 years so she won’t have to go to work immediately if anything happens to him. They opt for $1,440,000 cover for death and TPD through CONNECT, and also decide to investigate income protection insurance cover.

When to change?

Jon and Lou think they’ll only keep the cover this high for  the next 5-7 years or so. When they have a lower mortgage, Louise is back at work part time and the kids are older, they might reduce it to, say, $500,000.

(back to examples)

Case Study 3

Tamara D’ Angelo
Age 50

Divorced with 1 adult son aged 21, planning to retire at 57.
Currently  6 units – Decides to reduce to 3 units

Tamara has 6 units of cover - $216,000 worth – enough to pay out her mortgage of $100,000 and have $116,000 left over. With retirement getting closer, she is taking a hard look at her super and her finances.

Now that David, her son, is grown up, she doesn’t worry so much about him financially. But she definitely wants him to be able to live in the house, mortgage free, if anything happens to her. She also knows that he is the sole beneficiary of her current super account of $80,000 and would get that on top of any insurance payout. Tamara decides to drop her cover to 3 units so that if she dies or becomes permanently disabled, it would pay out the mortgage, and to use the money saved on extra insurance cover to top up her super.  She plans to leave that level of insurance cover in place until she retires at age 57.

(back to examples)