Important changes to REST Super insurance are coming from 1 Dec 2017

REST members are generally automatically covered for insurance when you join REST Super through an employer and REST receives an employer contribution for you. This is because we care about looking after you and it’s better to be prepared for the unexpected.

These changes come into effect from 1 December 2017 and no action is required by you. However, if you want to change your insurance options earlier, you can update your insurance at any time. Managing your cover is simple – log in to MemberAccess or call us to check what cover you have.

What are the changes?

Here’s a simple overview of what’s changing

REST Industry Super

REST is covering the cost of increased premiums

Did you know in the last financial year alone, we made over 5,100 claim payments to our members, totalling over $330 million. We’re proud to have been there for our members when they needed us the most. Due to the increased number of claims we have paid for Death and Terminal Illness (TI) this means we need to increase how much we pay for insurance cover for our members. The good news is you won’t see any change to the insurance premiums you currently pay because we’re covering the cost of this increase.

REST Industry Super

We’re keeping you covered if you stop working or change jobs

From 1 December, both your Total and Permanent Disablement (TPD) and Income Protection (IP) insurance will continue after you’ve changed jobs or if you stop working, no matter what your account balance is, provided you still have some funds available. Your insurance cover will remain active until you advise us you want to cancel it or your account balance cannot cover the insurance costs.

However, before your account balance gets too low to fund your insurance premiums, we'll write to advise you that your Death, TPD and IP cover will cease unless your account is topped up with a contribution within a required time frame. We'll advise you of when and what type of contribution has to be made so that you don't lose your insurance cover.

If your super account is open with a zero balance and you no longer have insurance cover but an employer contribution is made to your super account, we'll write to you to advise you of the level of insurance cover you'll receive (if any) and when the cover starts. The level of insurance you receive will usually be the new default level of cover, rather than your previous level of cover1. Your confirmation letter will show the amount of insurance cover you'll receive and you'll have the option to change your level of cover if you wish.

REST Industry Super

We’re keeping it simple

We know that as you get older, your life changes and generally your insurance needs will change too. This is why we have been automatically adjusting your insurance cover twice a year:

• On 1 January we increase the amount of insurance you hold by 5%, and increase your premium by 4.5%.
• On your birthday, we change the amount of insurance you hold to match our Life-stage scale2. This means as you get older, when you’re likely to have a life change happen, like buying a house, you’ll have an increase in the amount of insurance we provide you, for when you’re likely to need it most.

We want to keep your insurance simple so starting from next year, your insurance may automatically adjust once a year, on your birthday and the cost of cover may also change.

REST Industry Super

We’re increasing your Income Protection claim payments in line with inflation

Your ability to earn an income is your most important asset, and when you’re receiving an Income Protection (IP) claim payment, we increase your claim benefit every year by an index called Average Weekly Ordinary Time Earnings (AWOTE). We do this because we understand that if you were working (and not receiving an IP claim payment), it’s likely your income would have increased.

We’ll continue to index your IP claim payment once a year when you’re receiving a payment. However, from 1 December, we’ll use the Consumer Price Index (CPI), rather than AWOTE since CPI is a better benchmark which reflects the changes in the cost of living.

REST Industry Super

We’re making it easier to claim your full Terminal Illness payment

Currently, if you become Terminally Ill, we pay the lesser of your Death and Total and Permanent Disablement (TPD) insurance. From 1 December, if you become Terminally Ill, we’ll pay your Death insurance in full and you can use this money as you choose.

To find out more information on these changes, visit our FAQ’s or speak to a Live Chat agent

1. Reinstatement is subject to terms and conditions, refer to the Insurance Guide available from 1 Dec 2017.

2. The Life-stage scale design is used to provide cover relative to when people’s needs change, it increases at ages where major life events usually occur, such as when someone buys a house.

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Awards and ratings are only one factor to consider when deciding how to invest your super. Further information regarding these awards can be found at rest.com.au. Past performance is not an indicator of future performance. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au