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Part 10: Life insurance – additional risk insurance

4.10.1 Purpose

A member may be reimbursed the part of a life insurance policy premium they pay because of the additional risk involved in doing their duties. This includes a member on Reserve service. This additional risk premium is the difference between these two amounts.

  1. The premium the member would pay for life insurance if their duties did not involve additional risk.

  2. The premium they pay because of the nature of their duties.

Note: In the total workforce model, a member of the Reserves on Reserve service may be described as a member in Service category 3, 4 or 5. A member on Service option C is not a member of the Reserves on Reserve service.

4.10.2 Members eligible

A member may be reimbursed their additional risk insurance costs if they do either of the following.

  1. They pay more than a normal yearly life insurance policy premium because of the nature of their duties.

    Examples: A member serving in flying or submarine categories.

  2. They pay a higher premium on a life insurance policy they take out on a dependant because of the nature of their duties.

4.10.3 Members not eligible

A member will not be reimbursed their additional risk insurance costs if they pay additional premiums only because of the location they are serving in.

4.10.4 Amount of reimbursement

  1. The member is eligible for a reimbursement of the additional risk premium they paid for each insurance policy. No more than $2,386 can be paid in respect of a financial year, in total.

  2. The CDF may grant an additional reimbursement, up to the amount of the additional risk premium. The CDF must consider all these criteria.

    1. The member's rank and duties.

    2. The nature of the policy and the commencement and maturity dates of the policy.

    3. The value of the policy.

    4. The reason for the additional risk premium.

    5. The additional risk premium offered by other insurers.

    6. Any other factor relevant to the member's life insurance.

Persons who can make the decision under subsection 4.10.4.2 on behalf of the CDF:
Director General Navy People
Director Navy Personnel Policy
Director Navy Employment Conditions
Director General Personnel – Army
Director Personnel Policy – Army
Staff Officer Grade 1 – Personnel Policy – Army
Director General Personnel – Air Force
Director Personnel Policy – Air Force
Deputy Director Personnel Policy – Air Force
Deputy Director Service Conditions – Air Force

4.10.5 Timing of reimbursement

  1. A member is eligible for reimbursement once a year.

  2. The premium for the additional risk insurance must be paid in full before reimbursement can be made.

    Note: The member must provide evidence of the payment. It is the member's responsibility to provide enough detail to allow the benefit to be verified.

Application to Reservists: Yes.



Forms

Copies of forms are available on the webforms system or through the Defence Service Centre.

  • AA593, Application for reimbursement of additional risk insurance expenses

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Further info

Contact

Defence Service Centre

1800 DEFENCE (1800 333 362)

YourCustomer.Service@defence.gov.au