What is default insurance cover?
Default insurance cover is insurance cover which is automatically applied to your account without the need for you to provide any medical history or financial details. You simply start paying an insurance fee (insurance premium) for the default level of insurance cover that you receive.
Default insurance cover is dependent upon your age, which determines your number of units of cover, the cost of these units, and the sum of insurance afforded by each unit. Generally, as you get older the per $1,000 cost of your cover will increase but the cover provided decreases from a point during your thirties until cover ceases.
Eligibility
Not everyone is automatically eligible for default insurance cover.
In accordance with Putting Members’ Interests First legislation (PMIF) that applies from 1 April 2020, if you join or re-join legalsuper on or after 1 April 2020 and:
- you are under 25 years of age; or
- have an account balance of less than $6,000
legalsuper is not permitted to provide you with insurance automatically until you meet the PMIF requirements (i.e. you are at least 25 years of age and have an account balance of $6,000 or more).
Your eligibility for insurance cover under the policy will be checked at the time you lodge a claim.
Yes. If you are under age 25 or have an account balance of less than $6,000 you can request to have default insurance cover by making an early election.
If you make an early election, the following Eligibility Conditions apply:
- a valid early election form (i.e. the early election form completed to the satisfaction of the Insurer) is received by legalsuper within 60 days of the issue date stated on your welcome letter;
- a Superannuation Guarantee (SG) contribution is received in your account; and
- your account balance must be sufficient to pay for at least one month of insurance fees as at the later of:
- the date of receipt of your valid early election form; or
- the date of receipt of the first SG contribution applied to your account since joining legalsuper.
If you meet the Eligibility Conditions, default insurance cover will be applied to your account.
If you do not meet the Eligibility Conditions, we will not be able to provide you default insurance cover. If you wish to apply for cover in the future, underwriting (involving provision of health and medical evidence to the Insurer) will be required. Alternatively, you can wait to be provided default insurance cover when you later meet the PMIF requirements.
Eligibility for insurance cover under the policy will be checked at the time you lodge a claim.
Yes. Once you have met the PMIF requirements, (i.e. your account balance reaches $6,000 and I reach age 25) default insurance cover will automatically be applied to your account.
Yes. You may cancel any insurance cover in writing, (including email), or over the phone. Your cover will be cancelled from the date we receive your request or a later date as specified by you.
If you cancel your cover and subsequently decide that you would like to reinstate your cover, you will need to apply for cover by providing medical and other evidence to the Insurer. Learn how to change your cover.
Insurance Fees & Costs
Insurance fees are deducted from your account on the last Friday of each calendar month. This can be tax effective and easier for you, but it can lead to a reduced super balance. You can apply to cancel the default insurance cover at any time. If your account balance is insufficient on the last Friday of the month to pay for outstanding insurance fees your insurance cover will end.
Yes. Insurance fees are deducted from the balance of your legalsuper account. The amount you pay for insurance depends on the level of insurance you have.
Default insurance cover costs a different weekly unit fee based on your age for Death (including Terminal Illness) and Total & Permanent Disablement cover or Death Only cover (including Terminal Illness).
The number of units you receive depends on your age. Insurance fees are deducted from your account on the last Friday of each calendar month.
If your account balance is insufficient on the last Friday of the month to pay for outstanding insurance fees your insurance cover will end.
Default insurance can cover you for Death (including Terminal Illness) and TPD. The level of cover you receive depends on your eligibility and age upon receiving default insurance cover.
| Age upon receiving default cover | Default Death & TPD Cover |
| Before your 25th birthday* | 2 units |
| On or after your 25th birthday | 4 units |
*If you elect to opt-in early to receive default insurance cover you must answer a series of questions to the satisfaction of the Insurer. Timeframes apply.
If you are under 25 years of age and have elected to receive default insurance cover, an automatic increase from 2 units to 4 units will occur on your 25th birthday unless, after joining legalsuper, you:
- cancel your Death & TPD cover (or Death Only cover if you were issued Death Only cover); or
- cancel your TPD cover; or
- reduce your cover to 1 unit; or
- increase your cover to 3 or more units by any application; or
- converted your cover from Unitised to Fixed Cover; or
- vary the amount of your cover under the terms of the policy.
The amount of cover provided by each unit depends on your age and will change as you get older.
Default insurance cover will be either Standard Cover or Limited Cover
What is Standard Cover?
If an Employer-sponsored member makes an early election and satisfies the Eligibility Conditions, they will receive:
- Standard Cover if the first SG contribution is received within 120 days of the date you joined or re-joined legalsuper.
- Limited Cover if the first SG contribution is received after 120 days.
Standard Cover is cover for any illness or injury you suffer where cover is not affected by the date the illness becomes apparent or the injury occurs to you.
If an Employer-sponsored member does not make an early election, the default insurance cover provided to the member later will be Limited Cover (i.e. not Standard Cover).
What is Limited Cover?
Default insurance cover will be either Standard Cover or Limited Cover.
If an Employer-sponsored member makes an early election and satisfies the Eligibility Conditions, they will receive:
- Standard Cover if the first SG contribution is received within 120 days of the date you joined or re-joined legalsuper.
- Limited Cover if the first SG contribution is received after 120 days.
Limited Cover means you will be insured for Death Cover and New Events TPD Cover. New Events TPD Cover means you are only insured for TPD caused by an illness which first became apparent to you, or an injury that occurred, on or after the date your cover started or restarted under the current policy.
Limited Cover will continue for at least 12 consecutive months from the default cover start date. Limited Cover will be converted to Standard Cover once the member has been At Work for 30 consecutive days immediately before the expiry of the 12-month period. If the member is not At Work for 30 consecutive days immediately before the expiry of the 12-month period, Limited Cover will continue until the member is At Work for 30 consecutive days.
More information
Please refer to our Employer Sponsored Super & Personal Super Additional Information document to determine whether Standard or Limited Cover will apply for you, and details of when default insurance cover starts.