Choices & options
Also, important is:
There are two main rules about the benefit level you select:
- Rule 1: it must be at least $5,200 a year ($433 a month);
- Rule 2: it cannot be more than $55 for every $100 of your before-tax pay. Remember the benefit paid is tax free.
You can choose any benefit level you want between the minimum under Rule 1 and the maximum under Rule 2.
The delay between your first day off work and the day your disability insurance starts is called the "waiting period". When choosing your waiting period you should allow for any sick leave you are entitled to and consider how long you can afford not to have an income if you are disabled; the longer the waiting period, the cheaper the cost of cover.
Your choices are:
- one month;
- three months, or
- six months.
You can choose the maximum number of years that the disability insurance benefit be paid to you while you are disabled - this is called the "benefit period". Your choices for the benefit period are:
- two years;
- five years, or
- until you reach age 65.
The benefit period starts when you receive the first disability insurance payment at the end of the waiting period. The disability insurance payments will stop before the end of the benefit period if the insurer determines that you can start work again.
SuperLife has negotiated a special arrangement with the insurer that offers cover, in some cases, without the need for medical evidence. You should ask SuperLife whether you qualify for this “medical free” concession.
You can increase your existing insurance benefit without giving any medical details provided that the benefit after the increase is less than the “medical free limit”:
- by up to 30% each year; or
- if the extra insurance is taken out within one month after your marriage, or the birth of one of your children.
You can increase your insurance in all other circumstances by providing appropriate medical information.
SuperLife lets you replace some of the income you may lose from being disabled or sick. In some situations, you might have an “agreed amount” of insurance for example, in cases where your income varies a lot from year to year. This will need to be organised at the time the insurance is taken out.
If you leave employment and don’t have a job to go to, you can continue as a member but will need to arrange an “agreed amount” of insurance with the insurer.
With the exception of an “agreed amount” your cover cannot be more than 55% of your before-tax regular pay at the date the benefit entitlement arises even if your original cover is higher.
Your actual benefit paid will also be reduced if you get an ACC pension or income under other disability or accident insurance. The SuperLife insurance will only top the money you get from those up to the disability insurance benefit otherwise payable.