Why have Income Protection (IP) cover?
Rest Super’s IP cover is intended to provide you with a monthly income benefit to replace up to 77% of your pre-disability income if you have an extended absence from work due to sickness or injury. An additional amount of up to 12% of this monthly income benefit is also included to replace the super contributions which would otherwise be provided by your employer you were working. This just helps protect your retirement savings.
How much cover is provided?
The default level of Rest Super's IP design is based on the generally low salaries of our Rest members who work in the retail industry. This helps to improve the affordability of premiums and reduces the chance of providing a member with more IP cover than they could actually claim. The level of IP is flexible, and members can apply for a higher level of cover (up to 77% of their salary, plus 12% of the monthly income benefit for super).
The level of default IP increases over time, similar to the earnings of a typical Rest member (whether they are a full-time, part-time or casual employee). Cover is generally lowest at younger ages and increases as your age, and your salary is more likely to increase, then decreases again as you near retirement.
In addition to having the flexibility to change your level of IP cover, you can also change the waiting period and the benefit payment period at any time. Any changes that are accepted will only apply to claims with an incident date before the changes.. Any changes to your IP cover will result in changes to the premium you pay for your cover.
What happens if I need to make a claim?
You may be able to claim an IP benefit if you stopped working or are unable to work at full capacity in your usual job due to injury or sickness for a prolonged period.
If Rest’s insurer determines you are eligible to receive an IP benefit, the first monthly income benefit will be paid directly to you by Rest’s insurer. The first monthly income benefit is usually made at least one month after the waiting period has finished. IP benefit payments are assessed on a monthly basis and will continue to be paid to you until you can be reasonably expected to return to your usual job, however this benefit can only be made for a maximum period of time.
If you make an IP claim and are approved, you might be receiving or entitled to other amounts, like sick leave or workers' compensation, for the same injury or illness. These amounts are treated as 'benefit offsets' as they are factored into your IP claim and could reduce the amount of IP benefit you receive.
As well as sick leave and workers' compensation, some of the things we'll also consider include personal or other employer paid leave, and benefits from another insurance policy.
In the event you make an IP claim, the Claims Team at Rest’s insurer will support you to return to your pre-sickness or pre-injury life where possible through things like rehabilitation support, retraining or re-education.
Other terms and conditions apply to IP cover. You should read the relevant Insurance Guide here to determine if Rest’s IP cover is right for you.