Seeking an appropriate level of insurance cover
There’s been a lot of new legislation implemented around insurance in super recently to protect Australians’ retirement savings from being eroded by fees and costs.
Given the number of changes that have occurred just this year, it’s understandable that many Intrust Super members might be confused about what cover they have.
It’s important for members to be fully informed about how their insurance will be changing (or has already changed), so they can be sure they are adequately covered if the unexpected should happen.
Recent legislative changes to super
To ensure that your insurance premiums are not unnecessarily eroding your retirement savings, two major changes to insurance were legislated in 2019.
From 1 July 2019:
- Members who have not contributed to, or rolled over funds into, their accounts for 16 consecutive months could lose any default insurance attached to their account.
From 1 April 2020:
- Anyone under 25 years of age will no longer receive default insurance in super when they open a new super product.
- Members whose account balances have not been above $6,000 since 1 November will lose any default insurance attached to their account.
It’s important to note that the cancellation of insurance will not affect any cover for an event that occurred while your insurance was still active. So you can still make a claim for an illness or injury that occurred before 1 April.
Your insurance with Intrust Super
Insurance in super is a simple way to protect yourself from the financial impact of illness and injury.
Intrust Super offers members the following insurance options to all eligible workers, and is one of the only super funds that offers insurance cover to casual staff.
Life and Total and Permanent Disability (TPD) insurance
- provides much-needed financial assistance if your ability to work is permanently impacted
- assists your family with covering any outstanding debts or immediate expenses and
- provides cover for up to $300,000^ (extra cover can be applied for).
Income Protection insurance
- can cover your income for up to two years* if you become sick or injured
- can replace up to 90% of your income while you are unable to work and
- pays 10% of this benefit into your super account.
The premiums for insurance in super are covered by your super account, not your bank account. This makes insurance more affordable for a lot of people. Better still, premiums are deducted from pre-tax monies, making it a tax-effective way to secure insurance.
*52 weeks if illness is a mental condition.
^Cover for an amount of $300,000 applies to Intrust Super Core Super | MySuper members aged under 40.
Do you have enough cover?
Intrust Super members should review the appropriateness of their insurance cover in light of the recent legislative changes. Premiums for your insurance cover are taken from your super account and can therefore reduce your retirement savings.
That’s why it’s important to consider whether you need to keep your insurance. Your level of debt, your dependents and your income level are all elements you should consider when reviewing your level of cover, or deciding whether you need insurance at all.
Our free online financial advice service can provide recommendations on how much cover you might need to adequately protect yourself and your family. You can access Super Blueprint through MemberAccess – just navigate to the financial advice tab and follow the prompts.
Still unsure? The financial advisers at Intrust360° can assess your financial situation and provide some advice on an appropriate level of cover. You can contact them on 1300 001 360 or book an appointment online.
If you decide that Intrust Super’s default insurance cover is appropriate for you, you should keep an eye out for any communications from us regarding your cover. If you do fall into one of the categories listed above, you will need to opt-in to insurance to continue your cover.
If, after reviewing your level of cover, you wish to increase or reduce your cover, you will need to fill in an Application for Changes to Insurance form, available on our Forms and Documents page.
You may also be eligible to apply for additional cover after certain nominated events, such as marriage or divorce. Simply fill in a Life Event Application Form within 60 days and return to the above address.