Salary Continuance

Income protection insurance can be important if you:

• are self-employed or a small business owner, as you may not have sick or annual leave
• Ig you, your family members or dependents rely on the income you earn; and
• your debts, such as a mortgage, you'll need to make payments on even if you're unable to work

It's also important to consider

• if you have other insurance that can help replace lost income
• if you have private health insurance that could help pay for any medical expenses
• what help or support from family or friends may be available; and
• The cost and type of cover available to you.

Our insurance needs calculator can help you determine whether you need cover, and what levels might suit you. 

A waiting period is the time you must wait from when you become unable to work due to illness or injury to the time you become eligible to start receiving Salary Continuance benefit payments. legalsuper offers members a choice of three waiting periods: 30, 60 or 90 days. Generally, the shorter the waiting period, the higher your insurance premium will be.

During the waiting period, you must rely on your sick leave and personal savings. If your claim is successful, your monthly benefit starts at the end of your waiting period and is paid in arrears. It's important to note that you do not get back payment for the waiting period, and the claims process may not be finalised by the end of your waiting period. 

To consider the most appropriate waiting period, calculate the number of months you’ll be able to sustain your lifestyle and support your family when unable to work and not receiving your regular income, taking into account any accrued sick or annual leave.

With legalsuper, you can apply for cover of up to 85.5% of your monthly salary. In the event of a successful claim, after the expiry of your chosen Waiting Period, 75% of your monthly Pre-Disability Salary is paid directly to you by the insurer and 10.5% of your monthly Pre-Disability Salary is paid by the insurer into your superannuation account with us.

Whether you require the full 75% of your income to be covered will depend on your total monthly expenses. What percentage of your income do your expenses equate to? Would your health insurance cover all additional medical expenses?

The Benefit Period is the maximum length of time that you may continue to receive a monthly benefit payment while unable to work due to illness or injury. Members can choose between the following:

• Monthly benefit payable for two years
• Monthly benefit payable for five years
• Monthly benefits payable to age 60
• Monthly benefits payable to age 65

Benefit payments will not be made beyond age 65. The longer the Benefit Period, the higher the insurance premiums. In choosing the most appropriate benefit period some aspects to consider are your other insurances, debts, dependants and the additional cost of cover.

An Eligible Person or Insured Member may apply for an Insured Benefit, or to increase their Insured Benefit (as applicable) once in any 12-month period if a Work Event occurs, subject to the following:

• They must be aged under 55 at the time of applying;
• They may only apply for one Work Event in any 12-month period, and a maximum of three Work Events during their membership in the Plan;
• They may only apply for each Work Event once during their membership in the Plan;
• They must not have had a previous application for Work Events Cover declined by us;
• They must complete an Application to our satisfaction and return it to you within 180 days of the occurrence of the Work Event;
• They must not have previously received, been entitled to receive, be entitled to receive, or intend to apply for a total and permanent disablement benefit from any source;
• They must not have been in receipt of, intend to apply for, or be entitled to apply for any form of sickness, accident or disability benefit(s) from any source such as a life insurer or workcover authority; and
• They must provide proof of the relevant Work Event, as described in in the table below.

If Zurich accept the Application, they will issue a Decision Note and the increase in cover (as applicable) will be on the same terms and conditions that already apply to the member.

Where the Insured Member currently does not have cover under this Policy, they may apply for an Insured Benefit of up to $5,000 per month, subject to the Insured Benefit not exceeding 85.5% of their monthly Salary (of which 75% is paid as a Disability benefit and 10.5% is paid as a Superannuation Contribution Benefit).  When applying for the cover they must select:

• a Waiting Period of either 30 days, 60 days or 90 days; and
• a Benefit Period of either 2 years or 5 years

Where the Insured Member currently has cover under this Policy, they may increase their Insured Benefit by up to 10%, subject to the Insured Benefit after the increase not exceeding the lesser of:

• 85% of their monthly Salary; and
• $10,000 per month.

The new cover or increase in cover (as applicable) will commence from the date the Application is accepted by us.

Your premium is dependent on your age, cover level and gender. It's important to make sure you know how much your insurance costs. The premiums are deducted from your super account, and will reduce your retirement balance. If you do not have sufficient funds to pay for insurance, it may be cancelled.