What is Salary Continuance insurance?
Insurance for Salary Continuance (also known as income protection) is designed to provide a monthly income if you are unable to work due to illness or injury.
If you receive an income but become unable to work as the result of an accident or sudden illness, you can receive up to 75% of your usual salary as a regular cash payment in to your bank account. The payment comes from the insurer, not from your super balance. With legalsuper you can also opt to have an additional 10.5% paid to your super account, so your retirement savings don't fall behind while you're unable to work.
If you would struggle to meet your expenses if you didn't have an income, Salary Continuance is worth considering. It can help you to stay on top of debts and maintain your quality of life while you, most importantly, focus on recovery.
Understanding the basics
The insurer's definitions for cover
Insurance can be complex - different insurance policies often have different meanings for the same terms. The capitalised terms throughout the Product Disclosure Statement (PDS) are generally referencing specific terms, defined in the insurance policy. For example, to be eligible for a Salary Continuance claim, you must meet the insurer's definition of Total or Partial Disablement. We recommend you refer to the relevant PDS for definitions as you're reading.
Unitised cover
Salary Continuance is available as unitised cover. One “unit” of insurance equals $100 worth of coverage per month. As an example, if you wanted to be covered for $300 per month, you would purchase 3 "units" of insurance. The amount you pay for the 3 units depends on you Age, Gender, Waiting Period and Benefit Period.
Maximum levels of cover
You can apply up to a maximum level of cover of $30,000 per month. When applying, you can opt for cover up to the lesser of:
- A maximum of 75% of your salary, plus 10.5% Superannuation Contribution Benefit paid into your legalsuper account; and
- $30,000 per month.
The maximum amount you can receive if you need to make a claim on your Salary Continuance insurance is 75% of your salary paid directly to you, plus 10.5% Superannuation Contribution Benefit paid into your super account.
Waiting periods
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.
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. If your claim is not approved until after your approved waiting period has ended, once it has been approved your benefit will be paid in arrears from the end date of your waiting period.
Benefit periods
The benefit period is the maximum length of time that you may continue to receive a benefit payment. Your benefit period will be determined by the choice you made in your last approved application for Salary Continuance insurance. Members can choose either the standard benefit period or from three optional benefit periods.
- Standard benefit period
The standard benefit period is a maximum of two years. Benefit payments will not be made beyond age 65. - Optional benefit periods
For a higher premium, members can choose for a longer benefit period. Members can choose from the following options:
- Five year monthly benefit payable
- Monthly benefits payable to age 60
- Monthly benefits payable to age 65
If your benefit period is 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.
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 how legalsuper & Zurich Australia Limited work together here.
What does Salary Continuance insurance cost?
The cost of Salary Continuance insurance varies depending on your age and gender, chosen waiting period and benefit period, and the amount of your cover.
Insurance fees are deducted from your super account monthly, in arrears. This means you can get insurance without having to worry if you've got enough in your bank account, and without impacting your take home pay.
However, any insurance premiums are deduced from your super balance and will reduce your savings for retirement.
The insurance for Salary Continuance insurance is issued in units of cover. Each unit of cover provides Salary Continuance insurance of $100 per month ($1200 per annum).
Insurance premiums for females
| Age | Waiting Period: 30 days | Waiting Period: 60 days | Waiting Period: 90 days |
| 15 – 19 | $3.37 | $1.93 | $1.23 |
| 20 – 24 | $3.48 | $2.01 | $1.27 |
| 25 – 29 | $3.97 | $2.31 | $1.42 |
| 30 – 34 | $5.20 | $3.01 | $1.66 |
| 35 – 39 | $7.10 | $4.14 | $2.24 |
| 40 – 44 | $9.67 | $5.88 | $3.56 |
| 45 – 49 | $13.04 | $7.96 | $5.85 |
| 50 – 54 | $17.64 | $11.48 | $9.20 |
| 55 – 59 | $24.51 | $16.02 | $13.50 |
| 60 | $30.30 | $20.06 | $16.39 |
| 61 | $32.65 | $21.66 | $17.34 |
| 62 | $29.41 | $22.27 | $16.86 |
| 63 | $23.24 | $14.28 | $9.28 |
| 64 | $7.67 | $4.72 | $3.06 |
| Age | Waiting Period: 30 days | Waiting Period: 60 days | Waiting Period: 90 days |
| 15 – 19 | $5.28 | $4.57 | $2.90 |
| 20 – 24 | $5.52 | $4.79 | $3.03 |
| 25 – 29 | $6.43 | $5.64 | $3.47 |
| 30 – 34 | $8.59 | $7.47 | $4.15 |
| 35 – 39 | $12.01 | $10.43 | $5.71 |
| 40 – 44 | $16.71 | $15.16 | $9.31 |
| 45 – 49 | $23.18 | $21.02 | $15.76 |
| 50 – 54 | $32.30 | $31.14 | $25.56 |
| 55 – 59 | $46.30 | $44.67 | $38.66 |
| 60 | $55.55 | $53.85 | $44.19 |
| 61 | $54.16 | $52.11 | $41.40 |
| 62 | $42.69 | $46.20 | $43.14 |
| 63 | $31.18 | $27.22 | $17.76 |
| 64 | $10.22 | $8.94 | $5.84 |
| Age | Waiting Period: 30 days | Waiting Period: 60 days | Waiting Period: 90 days |
| 15 – 19 | $13.51 | $7.61 | $6.12 |
| 20 – 24 | $14.80 | $8.40 | $6.65 |
| 25 – 29 | $18.48 | $10.58 | $8.22 |
| 30 – 34 | $25.70 | $14.54 | $10.03 |
| 35 – 39 | $36.04 | $20.46 | $13.68 |
| 40 – 44 | $48.31 | $28.48 | $20.79 |
| 45 – 49 | $60.48 | $35.54 | $30.56 |
| 50 – 54 | $68.15 | $42.16 | $37.76 |
| 55 | $66.43 | $40.58 | $36.46 |
| 56 | $62.91 | $38.11 | $33.54 |
| 57 | $54.75 | $32.59 | $27.16 |
| 58 | $37.63 | $21.13 | $15.20 |
| 59 | $12.41 | $6.97 | $5.02 |
| Age | Waiting Period: 30 days | Waiting Period: 60 days | Waiting Period: 90 days |
| 15 – 19 | $13.74 | $7.73 | $6.29 |
| 20 – 24 | $15.13 | $8.59 | $6.85 |
| 25 – 29 | $19.05 | $10.92 | $8.52 |
| 30 – 34 | $26.88 | $15.23 | $10.58 |
| 35 – 39 | $38.48 | $21.85 | $14.75 |
| 40 – 44 | $53.09 | $31.37 | $23.17 |
| 45 – 49 | $69.73 | $41.13 | $35.98 |
| 50 – 54 | $86.65 | $54.04 | $50.08 |
| 55 – 59 | $98.78 | $61.09 | $57.22 |
| 60 | $97.25 | $60.09 | $52.27 |
| 61 | $92.08 | $56.49 | $46.92 |
| 62 | $79.40 | $47.91 | $37.00 |
| 63 | $53.47 | $30.47 | $20.14 |
| 64 | $17.64 | $10.05 | $6.63 |
Insurance premiums for males
| Age | Waiting Period: 30 days |
Waiting Period: 60 days |
Waiting Period: 90 days |
| 15 – 19 | $3.03 | $1.76 | $1.13 |
| 20 – 24 | $3.16 | $1.84 | $1.15 |
| 25 – 29 | $3.38 | $2.00 | $1.12 |
| 30 – 34 | $4.09 | $2.40 | $1.24 |
| 35 – 39 | $5.41 | $3.21 | $1.67 |
| 40 – 44 | $7.43 | $4.56 | $2.60 |
| 45 – 49 | $10.47 | $6.46 | $4.41 |
| 50 – 54 | $15.27 | $10.18 | $7.79 |
| 55 – 59 | $23.32 | $15.60 | $13.80 |
| 60 | $30.48 | $21.52 | $19.06 |
| 61 | $33.55 | $23.71 | $21.22 |
| 62 | $35.89 | $24.87 | $21.62 |
| 63 | $24.45 | $15.98 | $12.24 |
| 64 | $8.06 | $5.27 | $4.04 |
| Age | Waiting Period: 30 days |
Waiting Period: 60 days |
Waiting Period: 90 days |
| 15 – 19 | $5.11 | $3.79 | $2.21 |
| 20 – 24 | $5.41 | $4.04 | $2.26 |
| 25 – 29 | $5.91 | $4.43 | $2.26 |
| 30 – 34 | $7.32 | $5.45 | $2.57 |
| 35 – 39 | $9.91 | $7.46 | $3.56 |
| 40 – 44 | $13.94 | $10.76 | $5.67 |
| 45 – 49 | $20.15 | $15.63 | $9.86 |
| 50 – 54 | $30.27 | $25.25 | $17.97 |
| 55 – 59 | $47.60 | $39.76 | $32.68 |
| 60 | $60.50 | $52.92 | $42.71 |
| 61 | $60.58 | $52.40 | $42.38 |
| 62 | $56.82 | $47.65 | $36.87 |
| 63 | $35.71 | $28.07 | $19.72 |
| 64 | $11.68 | $9.19 | $6.48 |
| Age | Waiting Period: 30 days |
Waiting Period: 60 days |
Waiting Period: 90 days |
| 15 – 19 | $10.80 | $5.63 | $4.27 |
| 20 – 24 | $11.10 | $6.29 | $4.66 |
| 25 – 29 | $13.11 | $7.50 | $5.03 |
| 30 – 34 | $17.08 | $9.72 | $6.03 |
| 35 – 39 | $23.62 | $13.48 | $8.40 |
| 40 – 44 | $32.72 | $19.35 | $12.92 |
| 45 – 49 | $44.30 | $26.17 | $20.46 |
| 50 – 54 | $56.31 | $35.50 | $29.97 |
| 55 | $59.86 | $37.33 | $33.33 |
| 56 | $58.50 | $36.21 | $32.45 |
| 57 | $52.14 | $31.74 | $27.60 |
| 58 | $36.03 | $20.67 | $15.97 |
| 59 | $11.88 | $6.83 | $5.27 |
| Age | Waiting Period: 30 days | Waiting Period: 60 days | Waiting Period: 90 days |
| 15 – 19 | $10.14 | $5.67 | $4.32 |
| 20 – 24 | $11.20 | $6.35 | $4.72 |
| 25 – 29 | $13.33 | $7.64 | $5.14 |
| 30 – 34 | $17.55 | $9.99 | $6.21 |
| 35 – 39 | $24.63 | $14.09 | $8.85 |
| 40 – 44 | $34.93 | $20.71 | $13.95 |
| 45 – 49 | $49.15 | $29.16 | $23.14 |
| 50 – 54 | $68.03 | $43.26 | $37.63 |
| 55 – 59 | $89.35 | $56.42 | $54.69 |
| 60 | $96.58 | $63.52 | $59.63 |
| 61 | $94.44 | $61.71 | $57.16 |
| 62 | $83.31 | $53.51 | $47.47 |
| 63 | $56.23 | $34.09 | $26.60 |
| 64 | $18.57 | $11.25 | $8.78 |
Occupations
Zurich Australia Limited does not offer Salary Continuance insurance cover for all occupations. Please check the list of occupations below if you are not employed in a 'white collar capacity'.
All terms & conditions
For full terms and conditions that apply to insurance cover, please refer to the PDS and the Employer Sponsored Super & Personal Super Additional Information.