What is PMIF?
The Putting Members Interests’ First (PMIF) legislation has been put in place to help protect Australians’ retirement savings from being eroded by fees and costs.
PMIF prevents anyone under 25 years of age from receiving default insurance in super when they open a new super product on or after 1 April 2020. It also prevents members with less than $6,000 in their account from being issued with default insurance.
Members whose account balances have not been equal to or above $6,000 since 1 November 2019 will lose any default insurance attached to their account on 1 April 2020.
However, members who wish to continue their insurance can simply opt-in to insurance cover.
Once a member reaches the age of 25 and has their account balance reach more than $6,000, default insurance will be reinstated.
It’s also 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 2020, if you were eligible and held valid insurance prior to that date.
Review the appropriateness of your insurance cover
Any Intrust Super member who has their insurance cover deactivated will no longer be able to access Intrust Super’s Life and TPD insurance and PayGuard Income Protection insurance.
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 dependants 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 current needs and circumstances and provide some advice on an appropriate level of cover. You can contact them on 1300 001 360 or book an appointment online.
How can you keep your insurance?
If you decide that Intrust Super’s default insurance cover, you can fill out our insurance form to opt-in to insurance cover.
If you’d like to know more about this legislation, you can get in touch with your Relationship Manager, or use our Super Concierge service to have an Account Manager contact you. You can also call us on 132 467.
For further information, please refer directly to the PMIF legislation, available on the Parliament website here.
^Cover for an amount of $300,000 applies to Intrust Super Core Super|MySuper members aged under 40.