What government changes to insurance in super could mean for you

What is 'insurance in super'?

Insurance in super is insurance cover provided through your super fund. It will typically help to provide financial support if the unexpected happens and you become injured, ill or die. The cost of insurance in super is deducted from your super balance (unless your employer pays all or some of the cost of your insurance premiums).

What is automatic insurance super?

Automatic insurance in super is available to you as a member of our super fund, without the need for an application or health checks. To be eligible for insurance cover, you must be employed in an Insurable Occupation, be an Australian Resident, and meet all other eligibility requirements as set out in the insurance policy. You’ll find more information about eligibility requirements in the relevant Product Disclosure Statement (PDS).

What does it cover?

Typically, the general types of insurance provided are:
- Death insurance intended to help your dependants if you die
- Total and permanent disablement (TPD) cover intended to pay you a lump sum if you become totally and permanently disabled and you’re unable to ever work again due to illness or injury
- Income protection (also known as 'temporary disability' and 'salary continuance cover)' intended to provide you with ongoing income and financial support, should you become temporarily unable to work due to an illness or injury. It can help to give peace of mind knowing you have income to help pay your expenses while you focus on your health and recovery.

Do you have insurance in your super?

To find out what type and amount of insurance you have, you can:
- log in to your super account
- check your Annual Statement, or
- call us on 1300 55 7586
If government changes impact your insurance in super, we’ll write to let you know what the changes mean for you.

Access your super account online

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Government changes to protect your super

The government has made two sets of changes to insurance in super — the Protecting Your Super Package (PYSP) and Putting Members’ Interests First (PMIF). These changes are aimed at making sure your super savings aren’t reduced by the cost of insurance that you may not need or be able to claim on.

Putting Members' Interests First (PMIF)

The Putting Members’ Interests First (PMIF) changes impact younger members and/or members with low super balances.

From 1 April 2020, we’re not able to provide automatic insurance in super for new members before they’re at least age 25 and their account balance has reached $6,000 – unless they tell us, in writing, they want cover.

These changes don’t apply if your employer pays the full cost of your insurance.

Need more information?

Visit the Australian Securities and Investments Commission's (ASIC) MoneySmart website.

Visit the Australian Prudential Regulation Authority (APRA) PMIF webpage.

Does this apply to me?

Protecting Your Superannuation Package (PYSP)

The Protecting Your Superannuation Package (PYSP) changes impact members who have inactive super accounts.

We’re required to cancel insurance in super for inactive accounts. Your super account becomes inactive when it hasn’t received a contribution or a rollover for 16 months.

If your account becomes inactive and you want insurance then you need to tell us. Don’t worry though - we’ll send you regular reminder notices before your account becomes inactive, so you can act before your insurance cover is cancelled.

Does this apply to me?

Need more information?

Visit the super industry’s Protecting Your Super website at timetocheck.com.au.

Insurance in Super

We’re committed to helping members better understand and manage their insurance in super to make sure they have insurance cover that’s right for them.

Insurance in Superannuation Voluntary Code of Practice

We previously stated our intent to adopt the Insurance in Superannuation Voluntary Code of Practice (the Code). The Code was scheduled to come into effect on 1 January 2022.

Since the development of the Code, the majority of the requirements in the Code have been legislated or replaced by regulatory reforms. In July 2021, the Code Owners replaced the Code with guidance notes on claims handling and vulnerable members.

We’ve already implemented many elements of the previous Code to improve member experience and we plan to continue to implement the key elements of the Code and follow the new guidance notes where it is in the interests of our members in our claims process and handling of vulnerable members.

More information about Insurance in Super

Check out our Insurance Strategy and our Key Facts Sheet for Plum Super. They provide you with an overview of the insurance cover we offer and what you can expect from us.

Note: The Code Owners were The Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC).

Frequently asked questions

Here are some questions our members have asked about the government changes to
insurance in super:

How can I have insurance in super before I’m at least age 25 or before my super account balance has reached $6,000?

From 1 April 2020, we’re not able to automatically provide insurance to new members until they’re at least age 25 and their account balance reaches $6,000.

If you want insurance in super before we can provide it automatically, complete a Choose if you want insurance cover in super form. You’ll need to make sure your super account has sufficient funds to pay for the cost of your insurance premiums and your super account can’t become inactive (inactive means your super hasn’t received a contribution or rollover for 16 months).

If you’d like to find out more, call us on 1300 55 7586 or speak to a financial adviser who can help you respond to any changes to laws on super, social security and other retirement issues.

Is my super account inactive?

Your super account becomes inactive when it hasn’t received a contribution or rollover for 16 months. If your account becomes inactive you can:
- make a contribution to your super or complete a rollover from another fund to make it active again, and/or
- tell us you want to have insurance, even if your super is inactive, by completing a Choose to Keep My Insurance Cover form.
We’ll send reminder notices if your account has been inactive for 9, 12 and 15 months so you can act before your insurance is cancelled. You can set up regular contributions into your super account, so that it doesn’t become inactive.

What happens if I reach age 25?

From 1 April 2020, if you reach age 25 but your super balance hasn’t reached $6,000, we still can’t automatically provide insurance in your super account.

If you want insurance in super before we can provide it automatically, complete a Choose if you want insurance cover in super form.

You’ll also need to make sure your super account has sufficient funds to pay for the cost of your insurance premiums and your super account can’t become inactive (inactive means your super hasn’t received a contribution or rollover for 16 months).

You can also apply for other amounts or types of insurance. You may need to provide some further medical and employment information depending on when you apply. Your application will also need to be assessed and approved by the insurer.

If you’d like to find out more call us on 1300 55 7586 speak to a financial adviser. They can help you with any changes to laws on super, social security and other retirement questions.

What if my account has reached $6,000 but I’m not yet 25?

From 1 April 2020, if your super account has reached $6,000 but you’re not yet age 25 we still can’t automatically provide insurance in your super account.

If you want insurance in super before we can provide it automatically, complete a Choose if you want insurance cover in super form.

You’ll also need to make sure your super account has sufficient funds to pay for the cost of your insurance premiums and your super account can’t become inactive (inactive means your super hasn’t received a contribution or rollover for 16 months).

You can also apply for other amounts or types of insurance. You may need to provide some further medical and employment information depending on when you apply. Your application will also need to be assessed and approved by the insurer.

If you’d like to find out more call us on 1300 55 7586 or speak to a financial adviser. They can help you with any changes to laws on super, social security and other retirement questions.

Why was my insurance cancelled?

The government’s changes are aimed at making sure your super savings aren’t reduced by the cost of insurance that you may not need or be able to claim on.

These changes mean your insurance may be cancelled if:
- Your employer has been paying for your insurance in full, but stopped before your super balance reached $6,000 before 31 March 2020, or
- Your account becomes inactive (doesn’t receive a contribution or rollover for 16 months).
If you’d like to find out more call us on 1300 55 7586 or speak to a financial adviser who can help you respond to any changes to laws on super, social security and other retirement issues.

What happens if my insurance is cancelled?

If you’ve received a letter to let you know your insurance has been cancelled due to the government’s changes, it may include the option to reinstate your insurance cover—provided you take the steps by the date shown in your cancellation letter.

We’ll let you know in writing if your cover has been reinstated. If your insurance is cancelled, your insurance cover will no longer be available to you and you won’t be able to claim for events that happen from the date your insurance is cancelled.

If you decide you do want insurance after it’s been cancelled, you’ll need to apply. You may need to provide further personal medical and employment information depending on when you apply. Your application will also need to be assessed and approved by the insurer.

If you’d like to find out more, call us on 1300 55 7586 or speak to a financial adviser. They can help you with any changes to laws on super, social security and other retirement questions.

What happens if I don't do anything?

If you don’t make a choice about your insurance in super, we’ll provide automatic insurance when you’re at least age 25 and your account balance has reached $6,000 – subject to the eligibility requirements set out in the insurance policy.

How do I know that I’ve got the right type and level of cover?

We encourage you to regularly review your type and level of cover to ensure it meets your current and future financial needs.

The insurance cover that’s right for you depends on your personal, family and financial circumstances, as well as your income and lifestyle. You can regularly review your account and your insurance cover so that it continually meets your needs, especially as your circumstances may change.

Having the right levels of cover is important to make sure you and your loved ones don’t experience financial stress in dealing with ongoing living expenses with less income if the unexpected happens and you become injured, ill or die. Find out more

If you’d like to discuss your insurance arrangements, call us on 1300 55 7586 or speak to a financial adviser. They can help you with any changes to laws on super, social security and other retirement questions.

How do I find out if I have insurance as part of my super?

To find out if you have insurance with us, including the type, level and amount of cover and how much you pay for it, you can:
- log in to your super account
- check your Annual Statement, or
- call us on 1300 55 7586