UniSuper life insurance: Scam?

UncommonName on 10/08/2014 - 19:11
Last edited 10/08/2014 - 22:20

I work as a casual academic at an ACT Uni and have my super with UniSuper (mandatory!). My membership type is Accumulation 1, Uni contributes 9.5% as my work is not full time-permanent (casual or contract employee). So when I felt the need to have a life insurance, I learnt that life insurance is cheap with super funds.

Feeling very happy about it, I went through the details of UniSuper life insurance and it says I can not claim anything before being an active member for 3 years! This is just ridiculous. This is what written under the insurance option at UniSuper memberonline -

Please Note: The information about death and disablement benefits and insurance cover (if applicable) reflects the benefits that would have been payable on the date shown. Changes to your UniSuper membership or employment arrangements may affect your eligibility for these benefits and the amounts payable. Death and disablement benefits will not be payable if a member has completed less than three years contributing service after joining UniSuper or transferring into the DBD or Accumulation 2 from Accumulation 1 if the Trustee considers that the member's death, disablement, terminal condition or temporary incapacity arose directly or indirectly from a condition which existed at the time of joining or transferring. Any restriction or exclusion previously advised at the time of obtaining insurance cover may affect your eligibility to receive an insurance benefit. For further information please refer to the Super for Defined Benefit Division and Accumulation 2 members Product Disclosure Statement.

Can you guys clarify what you do for life insurance when with UniSuper?

Or just stop the UniSuper life insurance and go for 3rd party life insurance? Please note that I intend to get a life insurance soon.

UniSuper members, please chime in.

Life Insurance PDS: https://www.unisuper.com.au/~/media/Files/Forms%20and%20Down…

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Comments

  • c64 on 10/08/2014 - 19:21
    -1

    or just stop life insurance.

    • UncommonName on 10/08/2014 - 19:54
      -1

      I need some kind of life insurance!

      • blitz on 10/08/2014 - 22:06
        +7

        That's a bold statement.

    • Boshait on 11/08/2014 - 10:23

      Exactly. You can't take it with you.

  • [Deactivated] on 10/08/2014 - 19:40

    I don't think it is worth it, because even if insurance is cheaper inside super, you are already taxed once your super goes in. Due to this tax issue, you should try to keep the money in the super fund as long as possible until you actually need it.

    The idea is to keep your balance as big as possible as it becomes a tax free environment into the future. So, if you run down your super balance, you lose the benefit of extra tax free money in the future.

  • retiredfeline on 10/08/2014 - 20:20

    I think you missed the if part of the sentence.

    Death and disablement benefits will not be payable if a member has completed less than three years contributing service after joining UniSuper or transferring into the DBD or Accumulation 2 from Accumulation 1 if the Trustee considers that the member's death, disablement, terminal condition or temporary incapacity arose directly or indirectly from a condition which existed at the time of joining or transferring.

    If you have an accident, that's not due to a preexisting condition. But if your disability or death was due to a preexisting condition, then there would be no payout. I suspect other life insurance policies will have similar exclusions.

    Please note that I need to get a life insurance soon.

    Why, do you intend to um, go belly up soon?

    • UncommonName on 10/08/2014 - 20:39

      I suspect other life insurance policies will have similar exclusions.

      HESTA Super has 3 months waiting period. Unisuper is 3 years!

      Why, do you intend to um, go belly up soon?

      Re-worded that sentence. I have dependents, so looking for a cheap life insurance for just in case.

      • retiredfeline on 10/08/2014 - 20:42

        So the question is do you have preexisting conditions that would cause you to fall under this clause?

        • UncommonName on 10/08/2014 - 20:50

          No! I'm at my late 20's and don't smoke or drink (Usual for academicians?!!). :)

          Are you sure that there is no waiting period of 3 years?

        • retiredfeline on 10/08/2014 - 20:53

          @bargainaus: What that sentence says is, if you are disabled or die due to something that wasn't preexisting, the 3 year wait doesn't apply. But if they discover that it was due to a preexisting condition, they won't pay anything.

        • UncommonName on 10/08/2014 - 20:54

          @greenpossum:

          Does spending too much time on internet and often pulling sleepless nights count?

  • Davo1111 on 10/08/2014 - 23:58

    Any of the additional services on super are never good value.

    • UncommonName on 11/08/2014 - 00:59
      +1

      1 unit of Death and TPD cover is just 1.6$ per week @UniSuper (232,000$ cover, till 35 years).

      Can you show a better 'value' than this one? By value I mean cheap. :)

  • BobD on 11/08/2014 - 07:22

    Does UniSuper require a medical inspection before taking the life insurance? If not then ask your friendly GP for an inspection and a statement and treasure it if it is good. Make sure before you engage the GP that he will issue a detailed statement, not something bland like a sick note. It would be a very sick note if it was general and you had to rely on it. I believe there are testing facilities that will give you a good look over and a statement.

    • UncommonName on 11/08/2014 - 13:34

      UniSuper does not requite medical inspection for young people.

      • BobD on 12/08/2014 - 08:11

        Then you should get one and you can then say later that this was my status back then.

        • UncommonName on 12/08/2014 - 17:04

          How do I initiate the procedure? Just visit a GP?

  • todeadma2014 on 11/08/2014 - 08:36
    +2

    Your super fund is not mandatory. Several years ago the Government brought in legislation allowing employees to choose their own super fund. Having said that, a 3 year wait for cover for pre-existing conditions does not seem unreasonable.

    • UncommonName on 11/08/2014 - 13:35

      UniSuper is mandatory for all Australian university employees, it is protected by law.

    • pyro love bird on 12/08/2014 - 14:34

      Not at universities, there was a whole thread about unisuper a while back

      • UncommonName on 12/08/2014 - 17:06
        -1

        I tried to upvote you but negged accidently :(

        He is right, UniSuper is the only super fund you are allowed if you work at Australian Unis.

  • Bmann999 on 11/08/2014 - 10:30
    +1

    I used to work casually at a different University and had a similar situation: I wanted to change to VicSuper because the fees at UniSuper were high for my low balance… Although the rules on the website said UniSuper was mandatory, I could petition HR for a change and they approved it almost instantly.

    • pyro love bird on 12/08/2014 - 14:34

      Really?! unisuper keeps eating up my money, I'll go dispute it with HR :D thanks

  • tanoshiiki on 11/08/2014 - 11:43
    +1

    There is no super choice for staff covered under particular awards, like some academic ones.

  • AssociatedSuperSavvy @ UniSuper on 13/08/2014 - 12:52

    Dear bargainaus,
    It’s great to see that you’re taking an interest as a survey of people aged between 18 to 69 years old has found that even Gen Y is engaged with the importance of insurance http://www.financialstandard.com.au/news/view/37947129
    You mentioned you’re an Accumulation 1 member. This means that your insurance cover (if you have any, or you decide to apply for more) will be provided by our insurer TAL Life Limited (TAL). Cover provided by TAL is not currently subject to a pre-existing condition restriction of three years.
    The bold text you've provided from MemberOnline doesn’t apply to Accumulation 1 members.
    If you have any questions, call us on 1800 331 685 and we'll further explain the insurance cover we offer Accumulation 1 members through TAL. We also noticed you linked to UniSuper’s Insurance in your super booklet for Accumulation 1 members in your post – information about insurance cover for Accumulation 1 members is described in that booklet.
    PS: BobD’s post referred to having to see a doctor for a medical inspection as part of applying for insurance cover. Most members, on joining UniSuper, are entitled to automatic cover through TAL. Members who want to apply for additional cover just need to complete an application form. TAL may ask you to answer health and lifestyle questions as part of your application and this is commonplace across the insurance industry. It's a bit like you having to answer questions about your home or contents when applying for home and contents insurance cover.
    Best regards, UniSuper

    • UncommonName on 13/08/2014 - 21:48

      Thanks for your response, can you give answer to the following in plain english?

      [1] Do I need to conduct a health inspection? I am happy with automatic cover, do not intend to increase it.

      [2] There is no restriction or condition for Accumulation 1 members? My beneficiary can claim Death or TPD without any hassle, at any time from the start of the policy?

  • AssociatedSuperSavvy @ UniSuper on 14/08/2014 - 13:51
    +1

    Hi again bargainaus,

    If you're already comfortable with the level of automatic cover you have, that’s great. You don't need to provide health information if you don't want to increase your cover. The automatic cover is provided to you without you having to do anything.

    And correct—there are no exclusions or loadings on automatic cover.

    In the event that you or your beneficiaries make a claim, it will be assessed against the policy.

    The best thing for you to do is to give us a call on 1800 331 685 as insurance differs depending on individual circumstances.

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