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
If you join VicSuper FutureSaver through a participating employer and are receiving Superannuation Guarantee contributions into your account, you are an EmployeeSaver member. Generally, as an eligible 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 activate cover if these requirements are not yet 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.
No contributions for 16 months (inactive account)
We are required to cancel your insurance cover if you have not received any contributions into your VicSuper FutureSaver account for a continuous period of 16 months, unless you elect to keep your cover. We’ll write to you if your VicSuper FutureSaver account has not received any contributions after 9, 12 and 15 months to help you decide if you wish to continue with your cover.
Please note: The merger between VicSuper and First State Super (now known as Aware Super) on 1 July 2020 was considered as an activity on your account and your inactivity period was reset.
Things to consider
How much cover do you have?
It's important to review your insurance cover
Working out how much cover you need against death, disability and illness doesn’t have to be difficult.
We’ve provided an online checklist of seven 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 may be unintentionally paying multiple insurance premiums.
You should consider if you need multiple insurance covers or find out if you are able to claim on more than one policy, and consider which policy you might wish to keep, transfer or cancel.
We offer transfer of death only, death and TPD, and/or income protection cover from your other superannuation funds to VicSuper FutureSaver. The transfer of cover is subject to approval by the Insurer. For details and eligibility criteria to transfer your cover, read our Insurance handbook (PDF 2.2mb).
If you want to transfer your insurance with another fund, and also rollover the balance from another fund, you must first ensure the insurance transfer has been accepted with VicSuper FutureSaver prior to rolling over your balance and closing your account with the other fund.
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 FutureSaver.
Understand the benefits of insurance through your super
The benefits of insurance cover through super 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 FutureSaver 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.
How to keep your VicSuper FutureSaver insurance cover
Taking action to avoid losing your cover is easy. Choose from the following options:
- 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;
- if your account has been inactive, we will send you a letter or email with your member number and the unique code to help you elect to keep cover online. Use your member number and the unique code we sent you to submit your election to keep your cover. Go to my.vicsuper.com.au/keepcover 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 VicSuper FutureSaver account is deemed inactive if your account has not received contributions or rollovers from you or your employer for a continuous period of 16 months. The merger between VicSuper and First State Super on 1 July 2020 will be considered an activity on your account, which means your inactivity period will be reset.
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 VicSuper FutureSaver insurance cover in these circumstances, we must receive your election to keep cover 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. We will write to you once your balance becomes insufficient to cover the monthly insurance premium deductions, and should you wish to maintain your cover you will need to make sufficient contributions to your account. For more information contact Member Services on 1300 366 216.
Want to change or cancel your insurance cover?
You can change or cancel your VicSuper FutureSaver 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 now.
Alternatively, you can download and complete an insurance application form at vicsuper.com.au/forms
Where can I find more information on VicSuper FutureSaver insurance?
Don't sit there wondering - our team members are here to help!