Colonial First State Income Protection Insurance

colonial first state super

Colonial First State is a provider of income protection insurance, as well as a range of superannuation, retirement and investment products.

Colonial First State’s income protection insurance is only available to Colonial First State FirstChoice Super members through a financial adviser. Although Canstar does not currently compare Colonial First State income protection, we have rounded up some key product information below.

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What income protection insurance products does Colonial First State offer?

Colonial First State offers Salary Continuance Insurance (SCI) which is a term commonly used describe income protection insurance offered within super. Colonial First State offers this cover within its FirstChoice Wholesale Personal Super and Employer Super. 

Colonial First State says its SCI cover can provide regular monthly payments of up to 75% of your normal salary (up to $25,000 a month) if you are off work for an extended period due to total or partial disablement from an illness or injury.

At the time of writing, there are two classes of cover available under FirstChoice Employer Super:

  • Employer selected cover: provides automatic cover to most employees of a participating employer who has set up a plan for its employees in FirstChoice Employer Super.
  • Invested selected cover: provides cover to employee members, spouses of members and retained benefits members. A retained benefits member is a member who was an employee member but is no longer employed by the participating employer. This cover type allows you to choose the type and amount of cover that suits you.

Read more about the difference between salary continuance insurance and income protection insurance.

What features does Colonial First State income protection insurance offer?

According to Colonial First State, some features of its salary continuance cover include:

  • Monthly benefit: Your Colonial First State salary continuance cover provides a monthly benefit if you’re totally or partially disabled for longer than the applicable waiting period. There may be circumstances where benefits won’t be paid, these are outlined on the Colonial First State website.
  • Salary & super: You can receive benefits up to 75% of your nominated monthly salary plus up to 10% of your super contributions to a maximum benefit of $25,000 a month.
  • Waiting period: The waiting period for your cover can be 30 or 90 days. It can also be 60 days for cover taken out through the FirstChoice Employer Super product. 
  • Benefit period: The benefit period for your cover may be two years, five years or until you turn 65.

How to apply for a Colonial First State income protection insurance policy

You can apply for a Colonial First State income protection insurance policy by visiting the Colonial First State website, downloading the relevant forms and documents, and arranging to speak with a Colonial First State financial adviser. You can contact Colonial First State online or over the phone.

Additionally, most employee members of a FirstChoice Employer Super plan receive income protection insurance automatically. This provides cover up to a certain level without you having to apply or provide evidence of your health.

Eligibility to apply for Colonial First State income protection insurance

To be eligible for Colonial First State income protection insurance you must be a member of a FirstChoice super fund. 

Members are eligible for salary continuance insurance who are:

  • Between the ages of 14 and 65 years (FirstChoice Employer Super) or 14 and 60 years (FirstChoice Personal Super)
  • Permanent employees or are fixed term contractors on a contract of at least 12 months
  • Working at least 15 hours a week

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Colonial First State FAQs

The cost of your Colonial First State income protection insurance premiums may vary depending on a number of factors, including the amount of cover you choose and some personal and lifestyle factors, such as your age, gender and occupation. Colonial First State also says that your premiums will increase by 20% if you are a member of a small plan or are a retained benefit member. 

Premiums for Colonial First State income protection are paid out of your FirstChoice Employer Super balance.

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The Australian Taxation Office (ATO) states that you can claim the cost of premiums you pay that cover the loss of your income, such as income protection insurance. You can’t, however, claim a deduction for premiums that compensate you for physical injury or are taken out through your super fund. Ask your tax accountant or financial adviser for more details on this.

The ATO also says that generally speaking, premiums for forms of life insurance such as term life insurance, TPD insurance or trauma insurance may not be tax deductible.

At the time of writing, you must let Colonial First State know as soon as possible in writing that you wish to lodge a claim. Colonial First State says that delays in notifying it may affect the assessment of your claim, meaning reduced benefits.

Colonial First State has been providing Australians with investment, superannuation and retirement products and services since 1988. Colonial First State says it has now helped over one million Australians.

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Written by: Eliza Parry-Okeden | Last updated: November 28, 2019