Insurance cover is available to all eligible members of Netwealth Superannuation Master Fund (NSMF) Personal Super. You can apply for cover under two types of policies within the Fund: Personal Insurance under the Group Policy or a LifeWRAP Individual Policy.
To see our detailed Insurance Guide, please click here.
Group Policy
Group Insurance is a product offered by Netwealth, with majority of the forms used being Netwealth forms. Group insurance is available for Super Accelerator accounts only. Any requests for outstanding underwriting is communicated to the member and adviser by Netwealth, communications being sent under a Netwealth letterhead with Insurer annexures attached. When the application is accepted, Netwealth will issue an Insurance Confirmation letter, confirming all details of the accepted sums insured.
Under the Protecting Your Super (PYS) legislation, Netwealth are required to cancel any insurance cover held by a member through an ‘inactive’ superannuation account, which is an account that has not received a contribution or rollover for 16 months or more.
Insurance available under the Netwealth Group Policy:
- Death Only,
- Death and Total and Permanent Disability; and/or,
- Income Protection.
The insurance policy is taken out by Netwealth as the owner for all the members of the Fund who choose to participate under a Group Policy issued by AIA Australia Limited.
Death Only Cover:
Provides a lump sum payment to member’s beneficiaries if they die. In this case it will be paid into their Netwealth superannuation account.
Death Only cover is available to new and existing members of the NSMF who are permanent residents of Australia and aged between 15 and 74.
Please note that Death Only cover ceases at age 75.
Important changes to group insurance due to new 'Protect Your Super' Legislation package
The PYS legislative package was introduced in early 2019. This includes measures to protect members from the erosion of their superannuation benefits through the deduction of premiums for insurance that they may not want or need.
Under the new legislation, Netwealth are required to cancel any insurance cover held by a member through an ‘inactive’ superannuation account, which is an account that has not received a contribution or rollover for 16 months or more.
Netwealth have communicated to impacted members over the last few months with their options if they would like to retain their current insurance arrangements.
To retain their cover, members can:
- Complete an Insurance Election Notice (available on the website)
- Contacting us on 1800 888 223 and giving verbal consent (via Phone Instruction)
- Sending us an email stating that they want to retain their insurance (please note only the email that is registered on the member's account will be accepted); or,
- Engage with their account by initiating a rollover or a contribution (account will no longer considered as ‘inactive’).
TPD cover:
Provides a lump sum payment if you should suffer an illness or injury that leaves you totally and permanently disabled. Payment of the amount insured will be made to their Netwealth superannuation account.
New and existing members of the NSMF who are permanent residents of Australia and aged between 15 and 65 can apply for TPD cover. TPD cover will continue to age 75 with a scale back of the TPD cover from age 61.
TPD cover can not be greater than Death Only cover.
Scale-back of TPD cover:
Once you have attained the age of 61, TPD cover will be scaled back by 20% each year until age 64, where the remaining 20% of the amount insured is fixed until age 75 (which is when the cover expires).
This 20% reduction in TPD cover will also apply if submitting a new application for Death and TPD cover after age 60. For example, if you are age 61 and successfully apply for $100,000 Death and TPD cover, you will get $100,000 Death cover and $80,000 TPD cover.
Income Protection:
Provides a temporary replacement income if you unable to work due to illness or injury.
New and existing members of the NSMF – Personal Super can apply for Income Protection insurance cover if they are:
- permanent residents of Australia and aged between 15 and 64, and
- permanently and gainfully employed for at least 15 hours per week, in each and every normal working week.
Income Protection cover will cease at age 65.
Premium Payment to the insurer (AIA)
The monthly premium payments will be deducted in arrears from the member’s cash account. For the first month you are covered, the premium will be charged pro-rata from the day the cover commenced until the end of that month, and will be added to the next monthly premium charge. If there is insufficient value in the account to pay ongoing premiums, the cover will be terminated 60 days after the day on which the premium was last due.
LifeWRAP Individual Policy – Individual Life Insurance ONLY
Policies available through Retail:
- Death Only
- Total and Permanent Disability
- Death and Total and Permanent Disability and/or
- Income Protection
The retail insurance policy under the Netwealth Super Fund is taken out by Netwealth specifically on behalf of the member. The owner of this policy is the NSMF.
For the Investment Service the owner of the policy will be in the name of the Wealth Accelerator account – this can be SMSF, individual etc. Advisers apply for retail insurance directly with the insurer; the insurer will have this insurance available for platform investors, selecting Netwealth as the platform.
Retail insurance for platform investors is offered by AIA Australia, TAL Life and Zurich. LifeWRAP is the service offered by Netwealth to pay retail insurance premiums from their Super or Investment account and the policy can only be applied for using a financial adviser. All underwriting and policy amendments are administered by the insurer, and this is communicated directly between the insurer and the adviser/member.
Netwealth identify new insurance policies via daily movement files from the insurer.