Salary Continuance insurance

What are the waiting periods for Salary Continuance insurance?

A waiting period is the number of consecutive days you are Totally or Partially Disabled and that must elapse before any Salary Continuance benefit is payable. The waiting period commences on the day a medical practitioner examines you and certifies that you are totally disabled. legalsuper offers members a choice of three waiting periods: 

• 30 days;
• 60 days; or
• 90 days.

No benefits are payable during the waiting period. During the waiting period you can return to work for up to five days, without having to start a new waiting period. If this occurs, the days worked will be added to your waiting period. 

Understanding what salary continuance insurance is and how waiting periods apply can help members choose the right level of cover.

Sometimes, finalising a claim can take longer than expected - there is no assurance that your claim will be finalised by the end of your waiting period. Your approved payment won’t commence until your waiting period has ended. Once it has been approved, your benefits will be paid in arrears from the end date of your waiting period.

What are the benefit periods of Salary Continuance insurance?

The benefit period is the maximum length of time that you may continue to receive a benefit payment. It is determined by your choice in your last approved application for Salary Continuance insurance. Members can choose either the standard benefit period, or from three optional benefit periods.

1. Standard benefit period: The standard benefit period is a maximum of two years.
2. Optional benefit periods: For a higher insurance fees, members can choose from the following options. 

• Five year benefit period
• Benefit period to age 60
• Benefit period to age 65

If your benefit period is 5 years, to age 60 or to age 65, the amount of your monthly benefit will be adjusted according to an escalation factor. Twelve months after a Total or Partial Disability benefit has been continuously paid, your monthly benefit will be increased by the lesser of:

• The annual CPI increase; and
• 5%.

Your monthly benefit will not decrease if the percentage change in CPI is negative.  Many members value the flexibility that Salary Continuance Cover offers, particularly in comparison to purchasing it outside of super.  

^{All insurance provided to members of legalsuper is provided under insurance policies issued by Zurich Australia Limited (ABN 92 000 010 195 AFSL 232510). You can read more about insurance provided through legalsuper here.}

What does Salary Continuance insurance cost?

Salary Continuance insurance costs vary depending on age, gender, chosen waiting period, benefit period, and coverage amount. 

Insurance fees are deducted from your super account monthly, in arrears. This means you can get cover without it impacting your take-home pay. However, any insurance fees that are deducted from your super balance will reduce your savings for retirement. 

If you're comparing insurance options, it’s useful to understand the cost of your income protection cover and how this aligns with your financial goals.

Salary Continuance insurance is issued in units of coverage. Each unit provides coverage for $100 per month ($1200 per annum). 

Insurance fees outlined below are the annual insurance fee per unit.