Important rules on insurance
There are rules around the provision of insurance in super that mean your cover can get turned ‘on’ or ‘off’ in certain circumstances. Taking control means the decision is always up to you.
KNOW THE RULES
Rules around insurance
There are government set rules around insurance in super that are aimed at protecting low balance and inactive super accounts from having their balances reduced by fees, including insurance fees. These rules mean that some members may have their insurance cover turned ‘on’ or ‘off’ in certain circumstances. The good news is that, if eligible, you can choose whether to ‘opt in’ to start or maintain your insurance.
When will insurance get ‘turned on’?
- Eligible members, who are under 25 years old or who have less than $6,000 in their account when they join, will not receive automatic insurance cover.
- Members who turn 25 years old and have an account balance of $6,000 or more will have any eligible automatic insurance cover turned on.
- Members aged 25 years or older, whose account balance grows to more than $6,000 as a result of contributions or rollovers, will have any eligible automatic insurance cover turned on.
INSURANCE IN SUPER
Should you have insurance cover in super?
The choice is yours. You can decide whether you would like to keep your insurance cover or are happy for it to be cancelled. You can also tell us which types of cover you want to retain.
Reasons to have cover
- Insurance can help you and your loved ones pay the bills and keep things going if something happens to you.
- Insurance through your super is usually cheaper, as we use bulk purchasing power to negotiate competitive prices on your behalf.
- Insurance fees are paid out of your super balance, not out of your pocket.
- If you decide later that you want to reapply, your health, lifestyle and occupation will be assessed, after which the insurer will decide whether to accept your application.
Reasons to not have cover
- Premiums for your insurance cover can erode your retirement savings.
- You may have other cover with another super fund, or outside the super system.
- You may not need certain types of cover such as Death cover, because you don’t have any dependants.
- Keeping your cover means paying multiple sets of fees to keep your super account open.
Need more information before making a decision?
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