Income Protection Insurance

Income Protection cover is available to all members regularly working a combined total of at least 15 hours per week and are not employed on a casual basis. Acceptance for cover is dependant upon satisfactory completion of a Brief Personal Statement in regards to your current state of health and acceptance by the Fund's Insurer.  Automatic Acceptance of cover may be available if your employer has nominated Auswide as its default fund and various other conditions are met.

A benefit is paid when an insured member is absent from work as a result of being temporarily disabled through injury or illness. Benefits are subject to the Insurer being satisfied of the member's temporary disability as defined in the Insurance Policy.

Temporary disability is defined as the insured member "being unable by reason solely of illness or injury, to attend work and not being otherwise gainfully employed or engaged in gainful business activity".

Auswide enables members to tailer an Income Protection package to suit their individual requirements.  The options available are:

• A choice of three income levels i.e. 50%, 66%, 75% or 85% of income.
• A choice of three waiting periods i.e. 30, 60 or 90 days.

The amount of the benefit is limited to the lesser of 85% of pre-disability salary or $20,000 per member per month. Where greater than 75% of salary is insured, 75% will be paid to the member as a benefit with up to a maximum of 10% paid to their Auswide superannuation account.

Premiums for Income Protection insurance are in addition to Death Only and Death and Total & Permanent Disability premiums and are deducted monthly from member accounts.

Auswide also offers long-term Income Protection insurance cover. With this cover, benefits can continue to be received up until age 65. The waiting period before benefits are received is two years.

Payment of Income Protection benefit

A member must be disabled for a pre-agreed waiting period of 30, 60 or 90 days before a benefit becomes payable and the benefit period, which is a maximum of 2 years, will commence from the expiry of the waiting period.

Any benefit paid will be paid monthly and will be reduced by any payment paid under a similar policy, an annual disability policy and by any Workers' Compensation payments. Income tax instalments may also apply.

A benefit will not be paid where disability is caused directly or indirectly by self-inflicted injury, attempted suicide, act of war, service in any armed forces, pregnancy, childbirth or miscarriage.

Benefits will cease on the earlier of the following:

• the member is no longer disabled
• the member has received benefits for 2 years
• the member is no longer following the advice of a medical practitioner
• the member has insufficient funds in thier account to pay the insurance premiums
• the member provides a written request that cover is to be terminated
• the member turns 65
• the member leaves the fund
• the member commences duty with the armed forces of any country
• the member dies.

A proportional benefit is paid if the member resumes employment at a reduced rate of income while still partially disabled and the waiting period is waived if they suffer a recurrence of the disability from the same cause within 6 months of ceasing to receive benefits.

For more information on Auswide's Insurances, please refer to our Member Guide, contact Auswide Member Services on 1300 88 56 65 or email us at info@auswide.com.au.