The NDIS and AvSuper insurance
On 1 July 2013, the National Disability Insurance Scheme (NDIS) was introduced in limited areas, as the start of a national program to assist those Australians dealing with major disabilities. It is important to understand that the NDIS is not a replacement for your own death and disablement insurance cover.
What is the NDIS?
In simple terms, the NDIS is a national scheme to help financially care for Australians with disabilities. The scheme is being funded by the 0.5% Medicare increase from 1 July 2013 as well as Government funds.
The relevant legislation was passed in March 2013 and trials started in 4 states from July 2013. Another three states will start trials in July 2014, with full implementation expected by 2019-20.
Aimed around individual planning and delivery of needed services, the scheme is different to current practices and will involve local decision making to suit real people.
Is it insurance?
No, not really.
NDIS is not an income replacement option and doesn’t compensate for pain, suffering or economic losses.
It is however based on actuarial analysis of lifetime support costs and population trends, just like insurance is. It is based on building (or rebuilding) a recipient’s economic and social participation in the community and their independence.
In short, the NDIS is about providing needed services for people, not the lump sums or ongoing income you can get from insurance policies.
So do I still need AvSuper insurance?
AvSuper death and Total & Permanent Disablement (TPD) cover will provide a lump sum to you or your family if you die or are permanently disabled. AvSuper income protection or Total & Temporary Disablement (TTD) cover provides an income to help if you are unable to work for a while due to an injury or illness.
In other words, an insurance payment would be there to help pay the mortgage and household bills, not just the expense of managing your disability.
Remember that AvSuper insurance comes out of your super account, not your take home pay, and is generally more affordable than equivalent cover you arrange privately as we can access group rates for all our members.
4% of Australian parents* have adequate death cover
Only 31% of Australians have income protection insurance
3 in 4 Australians are diagnosed with a serious illness in their working life#
Need help deciding how much insurance will protect your family?
Our Member Advice Solution offers personalised advice, including assistance in determining your insurance needs. Call 1800 805 088 for your free appointment today!
* Parents with dependent children in 2005 according to lifewise. # ABS statistics
Email: firstname.lastname@example.org | Freecall: 1800 805 088 | Phone: 02 6268 5073 | www.avsuper.com.au
This information is of a general nature only and does not take into account your personal objectives, situation or needs. Before making a decision about AvSuper, you should consider your own requirements and the relevant Product Disclosure Statement (PDS). For a copy call us or visit the AvSuper website, www.avsuper.com.au. AvSuper Pty Ltd (ABN 46 050 431 797, AFSL 239078) is the Trustee of the AvSuper Fund (ABN 84 421 446 069). FS0015.3 07.2014