Changes to insurance

There have been significant changes for insurance in super over the last year, and so we undertook a thorough review of our insurance. Our review took into account all relevant factors, including the impact of legislative changes, the Fund’s insurance claims experience, product sustainability requirements and the overall value proposition of our insurance offering. Our insurance partner, TAL Life Limited, reviewed product pricing in light of these factors.

The revised pricing has resulted in a general increase in the cost of our Income Protection cover effective from 1 April 2020, while the cost of our Life (and Terminal Illness) and Total and Permanent Disablement (TPD) cover has increased for some members depending on age, from the same date.

Find out more about our changes here.

This will depend on the cover you had when the changes took place. If you're not sure what insurance you had, you can check your current level of cover with NGS Super through the insurance section of Member Online or call us on 1300 133 177.

To understand how the premium changes affected you, you'll need your:

• current sum insured (available through Member Online)
• insurance category (shown on your last Member Statement and also available on the TAL Insurance Portal through Member Online)
• age.

Using the premium tables provided in the Significant Event Notice, go to the table that is relevant to you:

Plus/Select insurance category - Default Cover

• Table 1 - Life (and Terminal Illness)
• Table 2 - TPD
• Table 3 - Income Protection (IP) (90 day waiting period; up to 5 year benefit payment period)

• Table 4 - Life (and Terminal Illness)
• Table 5 - TPD
• Table 6 - Income Protection (IP)

• Table 7 - Plus/Select category - Life (and Terminal Illness) and TPD
• Table 8 - General category - Life (and Terminal Illness) and TPD
• Table 9 - Income Protection (30 day waiting period; all benefit payment periods)
• Table 10 - Income Protection (60 day waiting period; all benefit payment periods)
• Table 11 - Income Protection (90 day waiting period; all benefit payment periods excluding 5 year)

Find your age and follow the row to see the previous weekly cost of cover and the cost from 1 April 2020.
The NGS Insurance Calculator has been updated with the new premium rates.

If you don’t know your insurance category (Select, Plus or General), you can find it by logging in to Member Online and going to the Insurance section. Select the TAL Insurance Portal button where your current cover and your Insurance Category will display. Alternatively, contact us and we can provide this information to you.

No. Benefits paid under an Income Protection claim are subject to a maximum of up to 90% (including up to 10% as super) of your pre-incapacity income (please see page 27 of our Insurance guide for more information) reducing to 70% of your pre-incapacity income after age 65. This is based on gross income as Income Protection benefits generally form part of your taxable income.

If you choose to reduce your sum insured this will reduce the cost of your cover.

That will depend on your individual circumstances. The NGS Super Default Cover package is designed to provide you with a basic level of protection that changes automatically throughout your stages of life.

But life can change quickly – you may get married, get a salary increase, have a baby or buy a house! So from time to time you may want to adjust your level of cover.

Not sure by how much? Speak to one of our NGS Financial Planners or call our Customer Service Team on 1300 133 177.

You can vary the level of your cover (up or down) at any time, subject to application approval.

You can apply to:

• increase your insurance cover
• change your Insurance Category
• change your insurance to fixed cover
• increase cover due to a Life Event (including a salary increase)
• 'transfer' cover from another provider (see 'Transferring your insurance cover' below).

You can also choose to:

• decrease or cancel your cover
• change your waiting period for Income Protection
• change your benefit payment period for Income Protection.

For example, if you chose to reduce your benefit payment period from five years to two years this would reduce the cost of your cover, but it would also mean that Income Protection payments would stop after two years even if you were still unable to work.

If you choose to cancel your insurance cover and later decide you would like cover again, you will have to provide satisfactory evidence of good health and be accepted by our insurer before cover can commence, and special conditions may apply.

You can make these changes through Member Online, or if you prefer, you can also make changes using our forms which you will need to complete and return to us. If you're unsure about your cover, its a good idea to seek advice.

Transferring your insurance cover

In some circumstances, transferring your cover to NGS Super could mean that you may be unable to claim for particular conditions covered by your present insurer. This is because:

• your new cover with NGS Super will be issued under new terms and conditions, and
• you have a new duty of disclosure when applying to transfer your insurance. If you do not meet your new duty of disclosure, it may result in your cover or a claim being at risk.

If you are concerned about this, you may wish to seek professional advice.

As a member of NGS Super, you have access to:

• Life (including Terminal Illness) cover, which can provide a lump sum if you die or become terminally ill
• Total and Permanent Disablement (TPD) cover, which can provide a lump sum if you are permanently unable to work due to illness or injury and
• Income Protection (IP) cover, which can provide you with an income if you are temporarily (or permanently) unable to work due to an illness or injury.

If you die, become terminally ill or totally and permanently disabled, Life/TI and TPD cover can provide a lump sum to help protect your family’s financial situation through the tough times.

If you suffer an accident or illness that stops you from working, IP cover can provide up to 90% (including up to 10% super contribution) of your pre-incapacity income, giving you the financial assurance to concentrate on your health.

Your IP and TPD benefits are designed to work together as one provides a regular income and the other provides a lump sum payment. A long-term IP benefit payment period (up to 5 years) will help you meet any future living expenses through regular income payments, while a TPD benefit will help you manage other financial costs associated with a permanent inability to work through a lump sum payment amount. These might include alterations to your home or ongoing medical costs.

The short answer is that we just can’t predict the future – when life doesn’t go to plan, insurance is there to protect you and your beneficiaries (such as loved ones) against financial hardship if you can’t work for a long period due to sickness or injury, become permanently disabled or die.

NGS Super partners with award winning insurer, TAL, to offer a range of flexible insurance options. In 2018, TAL paid $18 million in claims to NGS Super members alone.

Find out more here.

If you’re not sure about what type or level of cover you need, it’s a good idea to get an expert to help you out. We offer:

• insurance advice limited to your NGS Super cover at no cost over the phone through our Financial Advice Helpline, or
• low-cost tailored advice through NGS Financial Planning for insurance held inside and outside of super. NGS financial planners are not paid commissions or bonuses and, as an NGS member, your initial appointment is completely free.

To book an appointment, fill out our Financial advice enquiry form or call the NGS advice helpline on 1300 133 177 between 8:00am and 8:00pm (AEST/AEDT) Monday to Friday.