New legislation impacting insurance
Insurance cover is generally designed to provide you and your family with financial protection against some of life’s uncertainties. While insurance is important to provide financial protection, it may not be appropriate for all members, particularly younger members. As the insurance premiums are paid from your superannuation account on a monthly basis, they will erode some of your retirement savings and it is important that you consider whether insurance is right for you.
To help protect members of superannuation funds from having their retirement savings eroded through insurance premiums, the federal government introduced two legislative reforms. This included the Protecting Your Super (PYS) legislation, introduced on 1 July 2019 and Putting Members’ Interests First (PMIF) legislation, introduced on 1 April 2020. Changes to the eligibility for default cover are detailed below.
Eligibility for default cover
From 1 April 2020, as an EmployeeSaver member you will automatically receive cover for Death, TPD and Income Protection, known as ‘default cover’, if you:
- have had an account balance of at least $6,000 since and are at least 25 years old, or
- make a written election to receive cover if these requirements are not met.
If at the time of joining you are under age 25 or don’t have an account balance of $6,000 or over, you can elect to activate your default insurance cover. Otherwise, we will automatically provide default insurance when you turn 25 and have had an account balance of at least $6,000. Refer to the Insurance Handbook (PDF 2.2mb) for details.
Account balance less than $6,000 (low account balance)
If your account balance did not reach at least $6,000, between 1 November 2019 and 31 March 2020, and you did not make an election to keep your cover, your insurance cover was cancelled effective 1 April 2020.
You can request to have your cover reinstated under limited circumstances. Conditions apply. Refer to the Insurance Handbook for details.
No contributions for 16 months (inactive account)
VicSuper is required to cancel your insurance cover if you have not received any contributions into your VicSuper account for a continuous period of 16 months, unless you opt-in to keep your cover. We’ll write to you if your VicSuper account has not received any contributions after 9, 12 and 15 months to help you decide if you wish to continue with your cover.
Things to consider
How much cover do you have?
It's important to review your insurance cover
Working out how much cover you require could have in the event of your death, disability and illness doesn’t have to be difficult.
We’ve provided an online checklist of 7 things to consider when assessing your insurance needs. You can apply to increase, decrease, or cancel your insurance cover accordingly.
Check if you’re paying for multiple covers
If you have more than one super account, chances are that you also hold multiple insurance covers and are paying insurance premiums for them.
Find out if you are able to claim on more than one policy, and consider which policy you might wish to cancel.
Please check the insurance cover and other fees and charges of the super funds before making a decision to cancel the cover or transfer the cover to VicSuper.
Understand the benefits of insurance through your super
The benefits of insurance cover through VicSuper include:
- the confidence and peace of mind of knowing that you have some protection in place;
- financial support in the event of something happening to you;
- the convenience of having insurance premiums paid directly from your super account;
- access to competitive bulk insurance rates negotiated with our group life insurer.
Learn more about VicSuper Insurance
The insurance policy outlines all the terms and conditions for the insurance cover provided by our Insurer. There are certain circumstances, such as being self-employed, a contractor, over a certain age, having sufficient money to pay for cover or changes to your employment, which may affect your insurance cover.
Learn more about the insurance offered by VicSuper in our Insurance handbook (PDF 2.2mb).
How to keep your insurance cover
Taking action to avoid losing your cover is easy. Choose from the following options:
1. Opt in to keep your insurance
Use your member number and the unique code we sent you to submit your opt-in to keep your cover. Go to my.vicsuper.com.au/keepcover
(If the changes affect you, we will send you a letter or email with your member number and the unique code to help you elect to keep cover online).
- Or submit your election online: Log into your VicSuper MembersOnline account and select the Insurance tab and follow the instructions in the 'Election to keep insurance' box
- Or complete and send us the Keep your insurance cover form (PDF 76.9kb)
Frequently asked questions
How much cover do I have?
How can I check my account balance?
What is a low balance account?
For the purposes of insurance, your account is deemed as ‘low balance’ account if you are an EmployerSaver member who:
- joined VicSuper prior to 1 November 2019, and your account balance has not been at least $6,000 between 1 November 2019 and 31 March 2020; or
- joined VicSuper between 1 November 2019 and 31 March 2020, and your account balance has not been at least $6,000 between the date you joined VicSuper and 31 March 2020; or
- joined VicSuper on or after 1 April 2020, and your account balance has not been at least $6,000 at some point or you are under 25 years of age.
Note: If you have initiated an insurance change before 1 November 2019, you are deemed to have elected to keep your insurance cover even if you have a low balance account.
What is an inactive account?
For the purposes of insurance, your account is deemed as inactive if your account has not received contributions or rollover from you or your employer for a continuous period of 16 months.
We will write to you if you have not received any contributions after 9, 12, 15 months to help you decide if you wish to continue with your cover.
To keep your insurance cover in these circumstances, VicSuper must receive your opt in / election before your account is considered inactive.
If I consolidate my other super account, will I be able to keep my cover?Yes you will be able to keep cover, if consolidating your other super account to VicSuper results in increasing your VicSuper account balance to $6000 or more by 31 March 2020.
What happens if my insurance is cancelled?If your insurance is cancelled, you will no longer have insurance cover through your VicSuper account. If you later decide that you would like insurance cover, you will need to re-apply. Any application for insurance cover will be subject to approval by our insurer and may require underwriting.
What if you don’t have enough money in your account to pay for insurance?If there isn’t enough money in your account to pay your insurance premium, then you’re at risk of losing your insurance cover. For more information contact Member Services on 1300 366 216.
Want to change or cancel your insurance cover?
You can change or cancel your insurance cover online, by logging into your VicSuper MembersOnline account and selecting the Insurance tab. If you don’t have a MembersOnline account, you can easily register for one at vicsuper.com.au/register
Alternatively, you can download and complete an insurance application form at vicsuper.com.au/forms
Where can I find more information on VicSuper insurance?
Don't sit there wondering - our team members are here to help!