When it really counts – the value of life insurance
We all think “it won’t happen to me” but the data tells a different story. In the 12 months to June 2024 more than 43,000 claims were made in Australia on insurance within a superannuation fund on behalf of members who died or were permanently disabled. That is thousands of members and their loved ones who had the support of insurance to get them through life-changing events.
In terms of ANZ Staff Super, our insurer Zurich Australia paid out more than $9.6m in 2024 to our members or their beneficiaries.
It is a common misconception that insurance is just for older people. Many young people have insurance so their parents or partner are not liable for their debts (ie outstanding credit card debt and car loan) should they die. Once you have a mortgage and children the need for insurance cover is even greater. Many young people experience sporting accidents or receive serious health diagnoses preventing them from working to their full capacity for a period of time or making them unable permanently to do a job for which they have the education, training and experience.
As well as having insurance when you need it having the right type of insurance is also important. ANZ Staff Super offers Death and Total and Permanent Disability (TPD) insurance for all sections of the fund as well as Salary Continuance (also known as income protection) for the Employee Section (including Section C). Visit anzstaffsuper.com to learn more about the insurance we offer.
The benefits of insurance inside super
One of the benefits of insurance through super is that premiums are paid from your super balance, not out of your take-home pay, so they don’t impact your cashflow. This can be important for example if you are trying to maximise your repayments to reduce your mortgage. Your premiums will depend on your age, your level of cover and your member section, but generally premiums are lower than you would pay outside the fund. In fact, for Employee Section members, ANZ Staff Super insurance is rated the best value life insurance in any super fund in Australia by independent research firm Chant West1. Having great value insurance means more of your super balance invested and compounding for your retirement – see article
The power of compounding.Opens in new window
Insurance checklist
- Type of cover What are you covered for? You will find this information on your most recent annual statement or by logging in to Member Online.
Check now.Opens in new window
- Level of cover – too much or too little? Think about your financial position such as major debts – mortgage, car loans etc – as well as ongoing expenses like school fees, health insurance, medical. Is your cover enough to replace your income, pay off major debts, and support your family’s needs? Alternatively, do you have more cover than you need.
- If you’re unsure:
- try the Federal Government’s
MoneySmart life insurance calculatorOpens in new window
and/or
- give us a call and speak to an adviser. Insurance can be complicated – financial advice on key aspects of your superannuation – including insurance – comes at no extra cost for ANZ Staff Super members
2
.
If you do need to change your insurance see
Changing your insuranceOpens in new window
for more information or call 1800 000 086 for help or advice.
- Long-term impact on your super balance. While ANZ Staff Super insurance premiums are competitively low it is worth reviewing if you are paying for cover you do not need. Over time paying out less in insurance (and fees – ANZ Staff Super also has very competitive fees3) means more for your retirement. If your needs require you have a larger amount of insurance cover you could consider making a regular salary sacrifice contribution to help cover some the cost of insurance and reduce the long-term impact on your super balance. Read
The power of compounding.Opens in new window
- Your beneficiaries are up to date Life changes quickly – a new baby, a divorce – so your beneficiaries should reflect your current situation. Remember a Non-Binding Death Benefit Nomination (you can do one in
Member Online
or the app) is a guide only for the Trustee in the event of your death. If you want to make sure your wishes are followed should you die you need to complete a Binding Death Benefit Nomination. The latter cannot be done in Member Online, it has to be hard copy, witnessed by two non-beneficiaries, and posted back to us, given it is legally binding. You’ll find it on the ANZ Staff Super website under
Forms.Opens in new window
How to check
Did you know?
In exchange for the 45% subsidy for death & TPD Insurance, the Fund requires Employee Section members (including those in Section C) to keep their superannuation with ANZ Staff Super. If you’re in the Employee Section and:
- roll out even a small amount of your super balance to another fund (make a “portability transfer”) or;
- choose to have future super contributions paid into another fund;
your insurance cover (including any salary continuance insurance) will cease.
This rule helps ensure the long-term viability of the fund and that the 45% rebate enjoyed by all ANZ Staff Super members on their insurance premiums is fairly distributed. You can re-apply for cover after 12 months, but you will need to be personally underwritten and cover will only come into effect if the Insurer accepts your application. We explain this in the
Product Disclosure Statement (PDS) and In Detail bookletsOpens in new window
, and for rollovers out there is a warning next to the downloadable form on the website.
- The living overseas rule Your insurance ceases after 5 years of living overseas.
- A Non-Binding Death Benefit Nomination is just that – it is a guide but is not binding on the Trustee. If you want to make sure your wishes are followed should you die, you need to complete a Binding Death Benefit nomination. This can only be done for ANZ Staff Super as a hard copy form witnessed by two non-beneficiaries. You’ll find it on the forms page
hereOpens in new window
.
Keeping it real
ANZ Staff Super’s Claims Administration Committee (CAC) has oversight of the timely, efficient and empathetic management of insurance claims for ANZ Staff Super. We spoke to the three main ANZ Staff Super people involved with the CAC about their insights for members. What is the one thing they would like members to know or do, given their experience in insurance claims over the years:
Rob Sparrow has been a member-elected Director on the Board of ANZ Staff Super for 9 years and the Chair of the CAC for 4 years
“The future is anything but certain and so I believe that my valid binding nomination means that I have one less thing to worry about.”
Rebecca Noonan has been a member-elected Director on the Board of ANZ Staff Super for almost 2.5 years and a member of the CAC since joining the Board. Rebecca was also a financial adviser and financial educator in a former life.
“No one is promised tomorrow. Ask your loved ones ‘If I wasn’t here tomorrow would my insurance payout cover everything we want it to?’. You may find your cover is less than your zero-regret figure. I don’t service my own car; I take it to an expert. Our advisers can help you identify your zero-regret figure; they’re the experts. You’ll then be empowered to make the right decision for you.”
John Kaloupis has been the Governance Manager of ANZ Staff Super for nearly six years, championing the interests of members and their beneficiaries. He oversees the management of insurance claims within the Fund and ensures seamless coordination with both the insurer and administrator to achieve efficient and timely resolution of claims.
“Your super isn’t just about retirement…it’s about peace of mind. Death and TPD insurance through your super ensures your loved ones and your future are cared for when the unexpected happens.”