Sunsuper Life Insurance

Sunsuper superannuation

While it may be best known as a superannuation provider, Sunsuper also offers life insurance, including Death and Total & Permanent Disability (TPD) cover, to its eligible members within their super accounts.

What life insurance products does Sunsuper offer?

At the time of writing, eligible Sunsuper members are automatically provided with Standard Death and TPD Assist cover by default. There is also an option to tailor the insurance cover to suit individual needs. The premiums are deducted from your superannuation account and the benefits are renewed annually from the time the cover commences, Sunsuper says. It can also be requested by members who are eligible for the cover but don’t yet meet the automatic acceptance requirements. Benefits include:

  • Death cover is available up until the age of 70, including terminal illness cover.
  • Death cover is paid as a lump sum of up to $250,000.
  • TPD Assist cover lasts up until the age of 67 and provides payments in the event of injury or illness that prevents working to retirement age.
  • TPD Assist cover may include from one to six support payments over a minimum period of five years, or it may be paid as a lump sum in limited circumstances.
  • Sunsuper’s TPD cover is different to its TPD Assist cover. It is designed to provide a single lump sum payment, helping you to fund any special medical needs and assist with your costs of living.
  • You can choose to opt in for Income Protection cover within 120 days of joining Sunsuper. This cover provides a fixed monthly benefit of up to 85% of your income, to a maximum of $5,000 a month.
  • Optional White Collar Income Protection cover available for those who work in a ‘white collar’ role. If you’re eligible, this means you can apply for 50% more Death and TPD cover at no extra cost, Sunsuper says.
  • Premiums are withdrawn from your superannuation automatically, so that you don’t have to make separate payments.

Sunsuper says its tailored insurance cover may be suitable for members with specific needs or for those who are not eligible to opt in or automatically receive the standard life insurance cover. Benefits include:

  • Tailored Death cover up until the age of 70, including cover for terminal illness.
  • Tailored TPD cover up until the age of 67, with a choice between TPD or TPD Assist cover.
  • TPD Assist may provide early intervention and occupational rehabilitation support over the long term, and up to six support payments over a minimum of five years.
  • TPD cover may provide a single lump sum payment if you are totally and permanently disabled.
  • Opt-in or tailored Income Protection cover up to the age of 65.

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How much does Sunsuper life insurance cost?

Sunsuper says the cost of its life insurance products depends on the level and type of cover you have and whether you have any optional benefits added. Sunsuper says that age and gender are also considered, as the amount of cover members are eligible for changes with age.

The Sunsuper website provides the following table as an example of the cost of its Standard Death and TPD Assist insurance premiums each week:

Your age Male Female
25 $3.52 $2.36
35 $6.40 $4.32
45 $7.56 $5.92
55 $7.56 $5.92
65 $7.56 $5.92

Source: (October 2020)

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Eligibility to apply for Sunsuper life insurance

To apply for its life insurance, Sunsuper says you must be:

  • A Sunsuper member
  • Between 15 and 69 years old for Sunsuper Standard Death insurance, or between 15 and 66 years old for Sunsuper TPD Assist cover

To be eligible for automatic Standard Death and TPD Assist cover, Sunsuper says you must also satisfy the following requirements:

  • be actively employed and making contributions to your super
  • be at least 25 and your account balance has reached $6,000, or you have chosen to opt in earlier.

According to Sunsuper, you are not eligible for automatic cover if you are unemployed, self-employed or you have previously received or are eligible to receive another life insurance benefit from a superannuation fund or insurer. If you are not eligible for automatic cover, you may be still eligible for a tailored plan.

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How to apply for a Sunsuper life insurance policy

As Sunsuper life insurance cover is automatically included for eligible Sunsuper members, there is no need to apply for a policy. If you are not eligible by default for automatic cover, you may be able to opt in early or seek tailored Sunsuper life insurance cover.

Before taking out a life insurance policy, it may be beneficial to first compare various providers to help ensure you’re applying for a policy that suits your needs.

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Sunsuper life insurance FAQs

You or your beneficiaries can make a claim by calling 13 11 84 and notifying Sunsuper as soon as possible. You can also use the 24/7 claims eligibility tool via Member Online. Sunsuper says that a Claims Officer will guide you through the claims process.

The Sunsuper website doesn’t specify, but before you submit a claim you may need to have some these details on hand:

  • Your policy information
  • Information about the incident (date, time, place)
  • Original birth and death certificate if the incident was fatal
  • Medical reports, test/examination/laboratory results
  • What damage occurred during the incident
  • What other people, vehicles or property were involved in the incident

If your insurance claim is approved, Sunsuper will arrange the payment of your benefit depending on the type of cover.

Generally speaking, premiums for insurance taken out through your super fund are unlikely to be tax deductible, according to the Australian Taxation Office (ATO). This means that the premiums a member pays for their Sunsuper insurance are unlikely to be tax-deductible, according to the ATO.

Outside of super, the ATO says you generally can’t claim a tax deduction for life, TPD or trauma insurance premiums, although income protection insurance premiums may be tax-deductible in some cases. Ask your tax accountant or financial adviser for more details on this.

Sunsuper charges stepped premiums, which increase as you age. Sunsuper will confirm your cover each year in an annual statement and insurance summary. You can check this at any time online, over the phone or using the Sunsuper mobile app.

At the time of writing, medical tests are not required to apply for Sunsuper life insurance. However, in the event of a claim, Sunsuper may require additional evidence, or it may do a full review of your medical records.

Once you’ve applied for cover, Sunsuper says it will contact you if a medical examination is required during the claims process.

You are able to increase your cover by applying for a tailored life insurance policy. At the time of writing, a tailored life insurance policy can provide unlimited death cover, up to $5 million worth of cover for terminal illness and up to $3 million for TPD cover. The amount you are covered for under Sunsuper’s automatic cover also fluctuates as you age, for example, Death cover peaks at $250,000 in your early thirties before declining.

Established in 1987, Sunsuper is a profit-for-members fund and currently has approximately 1.4 million members. Sunsuper says it has $70 billion in funds under management as at October 2019, and that it helps over 100,000 Australian businesses to manage their employee superannuation.

This article was reviewed by our Sub Editor Tom Letts before it was updated as part of our fact-checking process.

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Written by: Eliza Parry-Okeden | Last updated: November 10, 2020