Important changes to Lutheran Super insurance cover and investment options from 1 January 2016

17/11/2015

From 1 January 2016, some changes to the insurance cover and the investment objectives of two investment options offered by Lutheran Super will take effect.

  • Some terms and conditions of death and total and permanent disability (TPD) cover will change, however premiums and level of cover won’t change unless the member requests it.
  • Income protection (IP) cover amount and monthly premiums will change, along with the terms and conditions of IP cover.
  • The investment return objectives for the Lutheran Super Growth and Capital Stable investment options will change.

 

Insurance changes

Table 1 shows the current insurance features and the changes that will take effect from 1 January 2016.

Table 1

 

 

The new terms and conditions outlined in Table 1 will not apply to claims where the date of disability is prior to 1 January 2016.

More details about these changes is provided in the notice, Important changes to your insurance cover.

For the full terms and conditions of your cover, read the Member information booklet.

 

Changing your insurance cover

If you have insurance cover, you don’t need to do anything unless you want to change your level of insurance cover. The changes that apply to you take effect automatically on 1 January 2016. Premiums for your cover will continue to be deducted monthly from your super account.

However, now may be a good time to review your insurance needs to make sure you are adequately covered.

  • If you would like advice about whether your current level of cover suits your needs, you can speak to a financial adviser over the phone, at no cost, by calling the Lutheran Super Helpline on 1800 635 796.
  • You can obtain a quote for the cost of cover for any change in your level of cover from 1 January 2016, using the insurance calculator located on the Insurance page in your online account. You will need your PIN to access your account, if you don’t have a PIN or have forgotten it, contact the Lutheran Super Helpline.  Requests to reduce your level of cover must be received by Lutheran Super by Friday 18 December 2015 for the revised premiums to apply from 1 January 2016.
  • You can apply to increase, decrease or cancel your cover at any time by completing and returning an Adjusting your insurance cover form. Conditions may apply.
 

New investment objectives

Over the medium term, the return forecasts for a number of asset classes are well below what has been historically achieved. As a result, the medium term return expectations for two Lutheran Super investment options need to be adjusted. From 1 January 2016, return objectives for the Growth and Capital Stable options will change as shown in Table 2.

Table 2
Option Current return objective Return objective from 1 January 2016
Growth option CPI + 4% p.a. CPI + 3.5% p.a.
Capital Stable option CPI + 2% p.a. CPI + 1.5% p.a.
 

Full details about all of the Lutheran Super investment options are provided in the Member information booklet.

 

Important information: This information has been prepared and published by LCA Nominees Pty Ltd ABN 61 008 204 939 AFS Licence #240571 as trustee for Lutheran Super ABN 93 371 348 387 MySuper authorisation 93371348387621 (Trustee). The information contained in this letter is general advice only of members of Lutheran Super and does not take into account a person's individual financial objectives, financial situation or needs. We recommend that you seek advice from a licensed financial adviser before acting on any information contained in this document. The Trustee reserves the right to correct any errors or omissions. The Lutheran Super Helpline and the Lutheran Super website are provided by Mercer Outsourcing (Australia) Pty Ltd ABN 83 068 908 912 Australian Financial Services Licence #411980.

 

LCA Nominees Pty Ltd ABN 61 008 204 939 AFS Licence #240571, as Trustee for Lutheran Super ABN 93 371 348 387.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.