What is fixed cover?

Default death cover and total and permanent disability (TPD) cover is provided in units, but these units start to decrease after the age of 40.

We know that many members want to keep the same level of cover for an extended period, especially if they have a family to look out for. That’s why up until age 60 you can choose a fixed level of cover for both death and TPD.

If you go fixed, you have to have fixed cover for both death and TPD, but you can have different levels of cover for both. For example:

Fixed cover is bought in units of $1,000 of cover, with the cost of a unit based on your age.

If you choose fixed cover your premiums will be payable at your relevant occupational rating. There are some conditions around increasing your level of cover above the default amount, and you can read the full details of these conditions in our Accumulation Account Insurance Guide.

Once you’ve fixed your level of cover, with one exception, it will remain unchanged until you tell us you want to change it. The one exception is that, based on your fixed cover at age 60, the amount of TPD cover you have will reduce every year from your 61st birthday, reaching zero on your 65th birthday. It’s calculated like this (using an example of $500,000).

Birthday Fixed TPD calculated as Calculation on $500,000 at age 60
61st 4/5 of age 60 cover $400,000
62nd 3/4 of age 61 cover $300,000
63rd 2/3 of age 62 cover $200,000
64th 1/2 of age 63 cover $100,000
65th $0 $0

We’ll write to you every year after you turn 60 though to let you know what your new cover amount is.

The value of your fixed death cover will remain unchanged until you turn 70 (or 60 if you are a Queensland police officer), when it will be cancelled.

Changing between fixed cover and unitised cover

You can switch between the two types of cover at any time (although you must always switch both death cover and TPD cover at the same time). If you switch from unitised to fixed, you choose your level of cover.

If you switch from fixed back to unitised you have the option of choosing how many units of cover you want.

Any changes will be subject to pre-existing condition terms.

Please refer to our Accumulation Account Insurance Guide for further information.

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