Who is eligible for life insurance?

Life insurance is available on all AMP super insurance policies, and is payable to the following recipients. 

 ✓  
Life insurance payments are paid to eligible beneficiaries of a member who passes-away. Learn more about beneficiaries.
 ✓   People suffering a terminal illness may be able to receive an early payment of life insurance up to a maximum amount (depending on the policy). Any payable amount over the maximum will be paid to their beneficiaries after they pass-away. 

Members are generally not eligible if the death was caused by:

   an act of war while they’re overseas for work (unless otherwise agreed). 
   intentional self-inflicted injury or attempted suicide, which happens within 13 months of the cover being taken out or reinstated.

What is considered a terminal illness?

Two registered medical practitioners must certify a member is suffering from an illness or injury, that’s likely to result in them passing-away within a two-year period (the certification period).

At least one of the registered medical practitioners must also be a specialist practising in an area related to the illness or injury suffered by the member.

You can find out more about this in your insurance guide your plan summary.

How life insurance is worked out and paid

Once we’re notified that a member has passed-away, their account balance will be switched into Super Cash - a low-risk investment option. Then, once ready, their eligible beneficiaries will receive the super account balance plus the proceeds of any insurance claim.

Terminal illness claim payments will also be invested in Super Cash. This money will be made available to the member as a lump sum once it’s confirmed that they’ve satisfied a condition of release under super law. 

 

Things to consider for terminal illness claims

The terminal illness test for releasing funds under super laws may be different to the eligibility rules in your insurance policy (please check your policy details for rules applying to you). This could be a problem if both tests aren’t approved.
For example, you may meet a condition of release under super law, however you may not meet the criteria under your insurance policy.

Please also be aware, if you withdraw your full super account balance, then your super account will be closed and any insurance held through that account will be cancelled (so you’ll no longer be covered and if you pass-away, and your beneficiaries won’t be able to make a claim).

Before making a terminal illness claim, it’s important to consider your personal circumstances and may be a good idea to speak to a financial adviser.

Example of a life insurance payment

Greg is 48 years old and runs a small business with his wife, Sue. Their three children are all under 12, when Greg has a sudden heart attack and passes-away. To add to the family’s devastation, Sue is left wondering what will happen to the business and how she will support the kids on her own.

Because Greg took out life insurance through his super, Sue receives a lump sum benefit of $2 million. She uses the money to cover the costs of the funeral and clear the mortgage and bills while she tries to adjust to life without Greg and work out what to do next. It’s a relief to her that she doesn’t have to worry about money on top of everything else that follows Greg’s death.

Thanks to the financial support the family receives, Sue is able to take adequate time to make a decision about the business - whether she wants to keep running it on her own, sell it, or hire a replacement for Greg’s role.

As Greg calculated a level of cover that would ensure the same standard of living for as long as the children are still in school, Sue has peace of mind knowing her kids will be taken care of until they’re financially independent.

Warning: This example is illustrative only and is not an estimate of the insured amount you will receive or fees and costs you will incur. This example is based on the following assumptions (a) the cover amount remains the same throughout the period and the policy is not cancelled or suspended and (b) No waiting period applies to the policy.

Insurance eligibility under super laws

Generally, under super laws, you may not be eligible for insurance if any of the following applies to you:

  • you are aged under 25
  • since opening the account, your balance hasn't reached $6,000
  • your account hasn't received a contribution or rollover for 16 months

Unless…

  • you tell us you'd like default insurance (if you tell us within 120 days of joining your employer, you won't need to complete a full application or provide information about your health. However, after 120 days, you will need to complete a full application and provide information about your health.) Or,
  • your employer funds the full cost of insurance and notifies us of this 

Please check your insurance guide or plan summary for more information around eligibility rules and how they may affect you. 

 

Complimentary super health check

Need a hand with the insurance in your super? Book a complimentary 20-minutes chat with a super coach at a time that suits you.

Temporary salary continuance

Also known as income protection, pays a monthly benefit if you’re too injured or sick to work.

Learn more

Total and permanent disablement cover

Pays a lump sum if you become disabled or too sick to ever work again.

Learn more

What you need to know 

Products in the AMP Super Fund and the Wealth Personal Superannuation and Pension Fund are issued by N.M. Superannuation Proprietary Limited (N.M. Super) ABN 31 008 428 322 (trustee), which is part of the AMP group.

This information is provided by AWM Services Pty Ltd ABN 15 139 353 496, AFSL No. 366121 (AWM Services) and is general in nature only. It hasn’t taken your financial or personal circumstances into account. It’s important to consider your personal circumstances and read the relevant product disclosure statement or terms and conditions available from AMP at amp.com.au or by calling 131 267, before deciding what’s right for you.

The complimentary super health check is provided by AWM Services and is general advice only. It does not consider your personal circumstances. Taxation issues are complex. You should seek professional advice before deciding to act on any information on this webpage.

You can read our Financial Services Guide online for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. You can also ask us for a hardcopy. All information on this website is subject to change without notice. AWM Services is a part of the AMP group and can be contacted on 131 267 or askamp@amp.com.au.

The information is current as at October 2021.