Insurance
Insurance is a very important part of your financial planning as it gives you and your family financial security should you become permanently disabled or pass away.
MARF provides a range of insurance options designed to help you make sure you have the right level of cover for your personal circumstances.
Taking out life insurance through MARF has a number of advantages including:
- Cover is automatically provided to all MARF members with no underwriting.
- Default cover at a level designed to suit your life stages.
- Top-up your cover at key times in your life with no questions or underwriting.
- Consolidating your insurances by transferring your existing cover into MARF.
- Affordable premiums, paid tax-effectively from your member account.
- The ability to tailor your insurance cover to better meet your needs.
- Competitive premium rates.
How does it work?
Default cover
All members who join MARF, whether they are part of an employer sponsored group or join as an individual, are automatically insured (subject to conditions which are outlined in the PDS) in the event of their death and total and permanent disablement (“TPD”). This cover is known as "default cover" and is not subject to any health checks, doctor evaluations, or additional paper work. Premiums are deducted from your Account balance each month to pay for the cover.
The type (e.g. full or limited) and amount of default cover varies depending upon your age and whether you are an employer sponsored member or join as an individual.
What is default cover & when does it commence?
The level of default cover for Death and TPD insurance is based on your age at your next birthday as shown in the table below and is known as Base Cover:
|
Age Next Birthday
|
Death and TPD Base Cover
|
|
Up to 22
|
$50,000
|
|
23 to 26
|
$80,000
|
|
27 to 28
|
$100,000
|
|
29
|
$150,000
|
|
30
|
$200,000
|
|
31 to 43
|
$250,000
|
|
44 to 45
|
$200,000
|
|
46 to 47
|
$150,000
|
|
48 to 50
|
$100,000
|
|
51 to 53
|
$80,000
|
|
54 to 58
|
$50,000
|
|
59 to 64
|
$40,000
|
|
65
|
$25,000
|
|
66 to 70
|
$25,000 (Death only)
|
Employer Division
If you are under age 65 and become an employer sponsored member, you will automatically receive, from the day you join MARF, the default amount of cover known as the Base Cover, provided:
· you joined the Fund within 120 days of commencing employment with your employer;
· your employer confirms you were At Work on the date of commencing employment with your employer. If you are absent on this date due to sickness or injury, you will be provided with Limited Cover until you are At Work for two (2) consecutive months, at which time you will then be provided with full cover; and
· your employer is making mandatory employer contributions on your behalf into the Fund.
Double cover for new employer sponsored members
On joining the Fund as an employer sponsored member, you can elect to increase your insured benefit to up to twice the Base Cover level. You must make the election within 120 days of starting work with the employer. Just like the Base Cover, the increased cover is not subject to any health checks, doctor evaluations, or additional paper work (‘underwriting’).
For example if you were entitled to $200,000 Death and TPD cover, you could elect to increase this to up to $400,000 provided you do so within 120 days of starting work with the employer.
Personal Division
If you were an individual member prior to 1 August 2010 and you are under age 65 on 1 August 2010, you will automatically receive, from 1 August 2010, the Base Cover. Importantly:
· if you were At Work on your normal working day immediately prior to 1 August 2010, you will receive full cover.
· if you were not At Work on your normal working day immediately prior to 1 August 2010, you will receive Limited Cover until such time as you return to work for 2 consecutive months.
If you are aged under 65 and become an individual member on or after 1 August 2010 you will automatically receive, from the day you joined the Fund, Base Cover. Your Base Cover will be Limited Cover for a period of 24 months from the date you joined the Fund. Full cover will be provided after 24 months subject to you being 'At Work' for 2 consecutive months at the cessation of the 24 month period.
Individual members can choose to apply for full cover immediately by completing a personal statement and undergoing underwriting.
How much does the default cover cost?
Different rates for different members
To make sure you are being charged the right amount for your insurance, it is important to make sure that we have details of your most recent occupation. In determining your occupation category the Administrator and the Insurer rely on information provided by you or your employer (as the case may be). You must notify us if your occupation details change, or if we have an incorrect occupation category recorded for you. If we don’t have details of your occupation, your premiums will be calculated using the Blue Collar occupation category. Full premium tables can be found in the Product Disclosure Statement.
Other Insurance Options
The insurance design within MARF allows you to obtain additional underwritten cover and fix your level of cover. There is a life events option that allows you to increase your cover when you experience certain "life events". You can also transfer in an exisitng death and tpd insurance policy into MARF.
Full details of these features, key definitions and premium tables can be found in the Insurance Fact Sheet or the current Product Disclosure Statement or contact us on 1800 095 030.