Important information about insurance

New ADF Super insurance arrangements from 6 July 2020—introducing lifePLUS Protect

06 Jul 2020

From 6 July 2020, if you leave the ADF, you can stay with ADF Super. If you’re eligible, you’ll be given automatic Death and Total Permanent Disability (TPD) insurance, and premiums and insurance administration fees (set out in the appendix to this notice) will begin to be deducted from your super unless you opt-out.

Further information about insurance in ADF Super, including premiums and insurance administration fees, will be available in the ADF Super Product Disclosure Statement and the Insurance and your ADF Super booklet available at csc.gov.au on or before 6 July 2020.

What's changing?

At the moment, you can only be in ADF Super if you’re serving* in the ADF. From 6 July 2020, the ADF Super rules are changing to allow veterans with at least 12 months’ continuous service to keep contributing to their account for life—even after they’ve discharged from the ADF.

As part of this change, a new insurance product, lifePLUS Protect, has been designed to automatically provide eligible veterans with a basic level of Death and Total and Permanent Disability cover.

You will automatically be provided with Death and Total Permanent Disability (TPD) cover when you satisfy all of the following conditions (‘Automatic Cover Conditions’):

  • have discharged on or after 6 July 2020;
  • have served in the military for at least 12 continuous months;
  • are 25 or older and have a super balance of $6,000 or more; and
  • you are not in receipt of an ADF Cover Invalidity class A or B benefit.
If you meet the Automatic Cover Conditions, you’ll be provided with a minimum level of Death and TPD cover based on your age the date immediately after you’re discharged.

Importantly, you won’t have an opportunity to cancel your insurance before it commences and fees and premiums will begin to be charged. If you cancel your insurance within 60 days from commencement, we will reimburse you all premiums and fees that you have already been charged. If you cancel your insurance cover after 60 days have passed, any premiums and fees already charged will not be reimbursed.

If you’d like to increase your insurance cover, and/ or apply for Income Protection cover, you can do so by completing a full insurance application.

* Serving as a member of the Permanent Forces or a continuous full-time reservist (within the meaning of the Australian Defence Force Superannuation Act 2015).

Why these changes are necessary

Serving members of the ADF are provided with Death and TPD benefits through ADF Cover, which are separate from ADF Super.

Because ADF Cover is designed specifically for serving members of the ADF, the death and invalidity benefits provided to you from ADF Cover won’t cover anything that happens to you after you transition out.

Due to the nature of military service, it’s often hard for members to obtain death and invalidity cover at a reasonable cost. LifePLUS Protect has been designed to provide a basic level of Death and Total Permanent Disability cover to ADF Super customers who have discharged from the ADF on or after 6 July 2020.

Do you need to do anything?

If you’re still serving in the ADF, you don’t need to do anything, and your Death and Invalidity benefits will continue though ADF Cover.

From 6 July 2020, if you’ve discharged from the ADF, we’ll contact you with details of:

  • any lifePLUS Protect insurance cover that you’re automatically provided with; and
  • any lifePLUS Protect insurance cover you’re eligible to opt-in for,
  • including details of the fees and costs associated with this insurance.

If you are automatically provided with lifePLUS Protect insurance cover because you satisfy the Automatic Cover Conditions, you can cancel your lifePLUS Protect insurance at any time. However, if you want to be reimbursed for any premiums and fees already charged to your ADF Super account, you must cancel your insurance within 60 days of discharge.

If you are not automatically provided with lifePLUS Protect insurance cover, your options depend on why you do not satisfy the Automatic Cover Conditions.

If it is because:

  • you’re under 25 years old, or have a super balance less than $6,000, you may:
  • opt-in to receive lifePLUS Protect cover before you turn 25 and have an ADF Super balance less than $6,000, but only if you do so within 60 days from discharge; or
  • you will be automatically provided with lifePlus Protect insurance when you turn 25 and you have an ADF Super balance of more than $6,000 (unless you opt-out as described below).
    You can, at any time, cancel automatic lifePLUS Protect cover, but you will not be entitled to a refund of any premiums or insurance fees charged to your ADF Super account if you do so later than 60 days after being provided insurance; or
  • you’ve been medically discharged as class A or class B, you can apply for cover by submitting a full insurance application.

Whether or not you are automatically provided lifePLUS Protect cover in the circumstances above, if you discharge from the ADF on or after 6 July 2020, you can also let your new employer know your ADF Super account details and continue contributing to your account.

Can I change or cancel my lifePLUS Protect cover once I have it?

It’s important for you to tell us if you don’t want insurance. Once you discharge from the ADF, you can cancel your insurance, personalise your cover, or apply for Income Protection by logging into member services online, or by calling us on 1300 203 439.

We’re here to help

You can call us on 1300 203 439 or email us at members@adfsuper.gov.au if you need any more information.

Appendix: lifePLUS DEATH and TPD Coverage and Premiums effective from 6 July 2020

All members who have lifePLUS Protect insurance cover will pay an insurance fee of $1.50 per month ($18 per annum). This fee covers CSC’s costs in providing insurance for members of ADF Super. The insurance fee is charged on a pro rata basis at the end of the calendar month, and will be deducted from your account at the beginning of the following month.
The cost of your cover will be based on your level of cover and current age, as outlined below.

For Death and TPD, premiums are expressed as annual rates per $1,000 of amount insured.

(Number of days in the month/365.25) x (Amount Insured/1000 x Premium Rate)

For the purposes of this formula, the applicable Premium Rates and Amount Insured are set out in the table below.

CURRENT AGE lifePLUS Protect Death Amount Insured lifePLUS Protect Death premiums lifePLUS Protect TPD Amount insured lifePLUS Protect TPD Cover premiums
16 $150,000 0.69 $50,000 0.09
17 $150,000 0.69 $50,000 0.09
18 $150,000 0.71 $50,000 0.02
19 $150,000 0.69 $50,000 0.09
20 $150,000 0.69 $50,000 0.09
21 $150,000 0.68 $50,000 0.12
22 $150,000 0.68 $50,000 0.12
23 $150,000 0.64 $50,000 0.28
24 $150,000 0.62 $50,000 0.31
25 $150,000 0.62 $50,000 0.35
26 $150,000 0.58 $50,000 0.47
27 $150,000 0.57 $50,000 0.49
28 $150,000 0.57 $50,000 0.49
29 $150,000 0.57 $50,000 0.68
30 $150,000 0.56 $50,000 0.75
31 $150,000 0.56 $50,000 0.82
32 $150,000 0.56 $50,000 0.96
33 $150,000 0.57 $50,000 1.13
34 $150,000 0.60 $50,000 1.22
35 $150,000 0.62 $50,000 1.31
36 $150,000 0.64 $50,000 1.50
37 $150,000 0.68 $50,000 1.67
38 $150,000 0.73 $50,000 1.90
39 $150,000 0.77 $50,000 2.09
40 $150,000 0.83 $50,000 2.28
41 $150,000 0.90 $50,000 2.53
42 $150,000 0.95 $50,000 2.86
43 $150,000 1.03 $50,000 3.31
44 $150,000 1.15 $50,000 3.68
45 $150,000 1.24 $50,000 4.22
46 $150,000 1.35 $50,000 4.86
47 $150,000 1.47 $50,000 5.63
48 $150,000 1.58 $50,000 6.41
49 $150,000 1.71 $50,000 7.23
50 $150,000 1.85 $50,000 8.21
51 $150,000 1.99 $50,000 9.32
52 $150,000 2.16 $50,000 10.56
53 $150,000 2.30 $50,000 11.83
54 $150,000 2.47 $50,000 13.28
55 $100,000 2.66 $33,000 14.83
56 $100,000 2.85 $33,000 16.57
57 $90,000 3.04 $30,000 18.59
58 $75,000 3.33 $25,000 20.00
59 $70,000 3.63 $23,000 21.52
60 $50,000 3.95 $16,000 23.21
61 $40,000 4.33 $13,000 24.93
62 $25,000 4.70 $10,000 26.94
63 $20,000 5.11 $8,000 29.62
64 $20,000 6.37 $8,000 30.02
65 $20,000 10.04 $8,000 20.96
66 $20,000 10.13 $8,000 26.00
67 $20,000 10.51 $8,000 30.58
68 $20,000 10.70 $8,000 36.36
69 $20,000 11.02 $8,000 42.29