What's insurance in super?
If you have super, you’ll more than likely also have access to life insurance as most super funds provide a basic level of insurance cover when you join the fund. This is often referred to as automatic or default cover.
With insurance in super, insurance cover will typically help to provide financial support if you’re not able to work from either illness, injury or even death. Having the right insurance cover can help to protect you and your loved ones when you need it the most.
To find out what insurance you have with us, visit plum.com.au to check your super account online, check your annual statement or call us.
If you do have insurance in super, we’ll let you know in writing if you’re impacted by the changes that may result in your insurance cover being cancelled.
The Government has rolled out laws in 2019 aimed at protecting your super savings by making sure your balance isn’t reduced by the cost of insurance.
Due to these new laws, your insurance cover in your super may be cancelled if your super account:
Need more information?
Stops us from providing insurance cover to you if your super account balance hasn’t reached $6,000 between 1 November 2019 and 1 April 2020. This is a once-off measure to cancel insurance cover on low balance accounts. If your super balance reaches $6,000 or you opt-in to keep your insurance in writing by 1 April 2020, it won’t be cancelled.
Stops us from providing insurance cover to you if your super account is inactive (inactive means, your super hasn’t received a contribution or a rollover for over 16 months) - unless you choose to keep your insurance cover. This change started from 1 July 2019. Don’t worry though - we’ll send you regular reminder notices if your account becomes inactive, so you can act before your insurance cover is cancelled.
With the new insurance in super laws, it’s an important time to consider if having insurance in super is right for you. It’s about you making sure that you have the right type and amount of insurance cover to meet your financial needs now and in the future, because the cost of insurance is deducted from your super savings.
It’s also about making sure that you’re not paying for insurance cover that you may not need. If you have more than one super account, you should consider how paying multiple insurance premiums will affect your super savings.
Find out more on our Think ahead. Act now for the future section.
If you’d like to keep your insurance cover and your super account balance is less than $6,000—here’s what you can do by 31 March 2020:
If you’d like to keep your insurance cover and your super account balance is inactive —here’s what you can do:
If you return the completed Choose to Keep My Insurance Cover form for inactive accounts and/or the Choose to have insurance cover in super form for low balance accounts, your insurance cover will stay in place until you tell us otherwise, provided there are sufficient funds in your account to pay for the cost of insurance.
If your super balance reaches $6,000 before 1 April 2020 your insurance will stay in place if you have sufficient funds in your super account to pay for the cost of insurance.
If your super balance doesn’t reach $6,000 or your Choose to have insurance cover in super form hasn’t been received by us, we’ll have to cancel your insurance in super on 1 April 2020.
This means that you’ll no longer be protected with your insurance cover and could be without protection if the unexpected happens to you.
If you’re impacted by an inactive account or a low balance account (less than $6,000) and you don’t do anything, your insurance will be 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.
You’ll need to re-apply and you may need to provide some further medical and employment information depending on when you re-apply. Your application may be declined by the insurer.
If you don’t take any steps to keep your insurance cover, we’ll be required to cancel your insurance on 1 April 2020. We’ll send you a confirmation letter letting you know when your insurance is cancelled.
We’ll send you regular reminder letters if your super account has been inactive for 9, 12 and 15 months, to give you an opportunity to choose to keep your insurance cover. If you don’t take any steps to keep your insurance, we’ll be required to cancel your insurance. We’ll send you a confirmation letter letting you know when your insurance is cancelled.
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.
That’s why we’re on board with the Insurance in Superannuation Voluntary Code of Practice which started on 1 July 2018. The code is important and a first of its kind for the insurance industry aimed at providing greater transparency for members and consistency of information and processes across the super industry.
We’re already meeting some of the standards the code sets out, and on track to meet the remaining items by March 2021. The 'Insurance in Superannuation Voluntary Code of Practice' (ISVCOP) supports us to provide the best experience for our members.
We’ll continue to provide updates as we move forward with our ISVCOP changes. Read more in our transition plan, outlining the details and key timings.
Our members are at the centre of everything we do and we’ve been listening carefully to the things that you’d like us to do better. That’s why we welcome these changes that protect your super savings and ask you to choose whether to have insurance or not based on what’s right for you.
A letter was sent to you because your super had a low balance (less than $6,000) on 1 November 2019, so under new Government changes, your insurance in super may be cancelled on 1 April 2020. We’ll be required to cancel your insurance cover on 1 April 2020 unless you take one or more easy steps to continue your insurance cover.
Check out the Steps to keep your insurance section.
You need to take some steps to keep your insurance in super – if your super account balance has never reached $6,000 by 1 April 2020, or your super account has been inactive for 16 months.
You can take one of these steps:
You’ll need to make sure you do this by the date set out in our personalised letter to you.
|Remember that you’ll also have to have sufficient funds in your super account to pay for the cost of your insurance.|
Check out the steps to keep your insurance information.
If you don’t do anything before the date your cover is due to be cancelled, your insurance will be cancelled and you won’t be able to claim for events that happen after this date.
We’ll write to you to let you know if this happens and what options are available and the important timings.
Typically, insurance cover is designed to help provide you and your family with financial support to maintain your lifestyle if the unexpected happens and you become injured, ill or die.
Having the right levels of cover is important to make sure you and your loved ones don’t experience financial stress as you deal with ongoing living expenses with less income. We encourage you to regularly review your levels of cover and adjust them to meet your current and future financial needs.
There are many reasons why your account balance may reduce. For example, if contributions aren’t being made into your super account and fees and insurance costs are being deducted, plus depending on your investment returns, these are all factors impacting why your account balance may reduce.
This is where the PYSP package changes are designed to protect your super account. We’ll let you know that your account is inactive, that way you can decide to make a contribution into your super account. Since the cost of insurance reduces your super balance, you can decide if you want to keep, or change, the insurance cover you have in super at any time.
There may be a number of reasons why your account balance is being reduced by the cost of insurance. These may include the amount, type of cover you hold, and how much you’re paying for this cover. To help you understand these items, all your super account details including your insurance cover are outlined in your welcome kit and annual statement, which we provide to you.
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.
In many cases, employers select default insurance cover for employees which typically includes Death and Total & Permanent Disablement insurance and sometimes, Income Protection. This is set up automatically at the time when a new employee joins the fund. If you have MySuper, insurance cover is automatically included. To help you understand, all your super account details, including your insurance cover, they are outlined in your welcome kit and annual statement, which we provide to you.
You can find out if you have insurance in super by reviewing your welcome kit, your latest annual statement or insurance summary. It’s important that you review the information in these documents to make sure we have the most up-to-date information about your account. These documents set out your super account balance, what type of insurance you have, how much you pay for insurance and how much is being deducted for your insurance premiums.
You can also cancel or change your insurance cover at any stage.