Personal Insurance for ADF Members

The following information is current as at 23 September 2013

Defence looks after ADF members and their families through the Military Rehabilitation and Compensation Scheme, and through death and invalidity benefits contained in the Military Superannuation schemes. These are your statutory entitlements. Most ADF members have found that their statutory entitlements are adequate to meet their needs.

For ADF members, insurance provides optional extra cover for those people who depend on you financially should you die or become disabled. Insurance should be considered as part of your life’s financial planning, and not just at deployment time. Some ADF members have decided that, due to their particular circumstances, they require extra cover. A good way of working out whether you need extra personal insurance is to have a look at what you would be entitled to under the Military Rehabilitation and Compensation Scheme and your Military Superannuation scheme, and then work out what your dependants would need, each year, to maintain their current lifestyle. If there is a gap, you might want to consider additional insurance.

You should make sure that whichever personal insurance policy you have, it is valid in a war zone or in war-like activity. These are called ‘war exclusions’, but can apply more widely than just in war. Even if you are applying for a new insurance policy that does not contain these exclusions, the insurance company might not agree to accept you because of the nature of your ADF duties.

Where you own an existing policy that you purchased PRIOR to receiving formal notice of deployment, the insurance company may continue to cover you even if your policy contains a war exclusion. However, it is strongly recommended, first, that you should DISCLOSE to the insurer that you are being deployed AND secondly, that you receive WRITTEN CONFIRMATION from the insurer (before you leave) that cover will continue while you are away. Otherwise the insurer may deny cover to you and your family when you need it most.

The Zurich life insurance policy known as Ezicover Term Life was previously available to ADF members through Navy Health. Navy Health has advised Defence that Zurich has made a commercial decision to discontinue availability of this policy to ADF members. However, the Zurich Ezicover Term Life product is guaranteed renewable, meaning that if you are already a policyholder, coverage will continue as long as you continue to pay the premium.

The Australian Government Actuary has advised Defence that Asteron offers a life insurance policy that does not contain war exclusions, however, to be effective the policy must be purchased PRIOR to formal notice of deployment. Defence Health can advise you about this Asteron policy.

The Actuary has also advised Defence that AIG offers a personal accident and accidental death insurance product known as D-Pax Personal Accident Insurance. AIG states that D-Pax is specifically tailored for ADF members and their families. The Actuary has advised Defence that D-Pax provides coverage for a range of accidents and accidental death. It provides the option for a policy holder to switch to coverage for war zones without waiting periods. Unlike a life insurance product, D-Pax is not guaranteed renewable. AIG can advise you about this policy, phone 1800 650 224.

The above information must not be treated as personal advice. You should consider your specific needs and think about consulting an insurance company or a licensed financial adviser of your choice.