Big changes to insurance in super are coming on 1 April 2020
Most members have insurance cover included in their super, but for some it may be cancelled on 1 April 2020.
The Government's Treasury Laws Amendment (Putting Members' Interests First) Act 2019 comes into effect on 1 April 2020. These reforms aim to protect Australians' super savings from erosion by insurance premiums.
While many members currently have insurance cover through their super account, under this Act we’re required to turn off your cover from 1 April 2020 if:
You can elect to keep your cover, even if your account balance is less than $6,000, in the following ways:
Alternatively, you can make contributions or transfer funds into your super account to increase your balance to at least $6,000 before 1 April 2020.
Your cover will remain in force until the date it’s cancelled. If your cover is cancelled, you may still be eligible to make a claim on this policy if the insured event occurred while your cover was in force.
We negotiate with our insurer for discounted group rates which means that you generally pay less than you would if you personally applied for cover. And the cost of cover is paid out of your Tasplan account rather than from your pocket, so it doesn’t affect your take-home pay.
We understand that super and insurance can be complex. We can help answer any questions you have. Simply call us on 1800 005 166 or email us at email@example.com.
More than three in four Australians agree that insurance inside super enables them to have some protection in place (78%)1.
1MetLife proprietary quantitative research 2019.