Many Australians choose to take out group life and/or income protection insurance through their superannuation fund to protect themselves and their families at times when unexpected life events occur.
The Putting Members’ Interests First legislation introduced 1 April 2020, aims to improve the retirement outcomes for super fund members by ensuring they aren’t paying insurance fees for cover they don’t need or want and if you are under 25 this has a direct impact on you.
If you are under the age of 25 and have a balance of $6,000 or less, you must opt in to retain your insurance cover or to apply for insurance.
If you have previously signed up for Group life or Group income insurance and your balance falls to less than $6000, you must take action to retain it, otherwise it will be cancelled.
What are my options if I want to have insurance?
- Make a contribution so your balance is over $6,000. This could be from you or your employer.
- If you hold superannuation accounts with other funds, you can consider rolling these into this account to increase your balance over $6000. It is simple to do using MyGov
- Complete a form to Opt In to retain/reinstate insurance cover.
If you have not had insurance before but have decided it is something you would like, contact us for information and application forms.
We suggest that you consult with a financial adviser to explore what is the most appropriate decision for your circumstances.