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Federal Government announces more changes to insurance inside super

December 17th, 2019

We need to share another important update on new Federal Government laws that came into effect from 1 November 2019 and which may impact you if you have insurance inside super with us or any other fund.

Super account balance below $6,000? Your cover is at risk of being cancelled on 1 April 2020.

Like millions of other Australian workers, First Super members have been automatically protected with insurance inside super since joining the Fund. This cover provides peace of mind, so that members have some protection in place in case they were totally and permanently disabled or in the event of their death.

The new Putting Members’ Interests First (PMIF) reforms mean that if your super account balance has not been $6,000 or more on 31 March 2020, First Super will be required by law to cancel your insurance cover on 1 April 2020 unless you tell us that you want to keep it.

Why is this happening?

These reforms aim to ensure that people’s super balances are not eroded unnecessarily by insurance costs. As a result, from 1 April 2020 super funds can provide insurance on an “opt-in” basis only to:

  • members whose super account balances have not been $6,000 or more since 1 November 2019; and
  • members who are under age 25 and open a new super account.

Do you have cover with another super fund?

When thinking about whether it’s worth keeping First Super insurance, members should check if they have any other cover and the amount of that cover:

  • with another super fund, or
  • through a separate life insurance policy.

Depending on their personal situation and insurance cover needs, members may wish to consider rolling in other super balances to one super account and/or transferring their cover from another fund.

Want help to make a decision?

To find out more about your insurance cover with First Super and for general advice on your options, you can speak to our Member Services Team or your local Member and Employer Services Coordinator.

If you would like to discuss whether insurance in super is right for your personal circumstances, you can speak to a First Super Financial Planner. Intra-fund advice is available at no additional cost to First Super members.

Contact our Member Services Team on 1300 360 988 or mail@firstsuper.com.au.

Making your choice is easy

The good news is that you’re in control – you can elect to keep your insurance cover with First Super. Simply complete and submit the online opt-in form on our dedicated web page – firstsuper.com.au/PMIF.

If you don’t want to keep your First Super insurance, you don’t need to do anything. Your cover will automatically stop on 1 April 2020 if we don’t hear from you. You can also cancel your cover at any time by contacting our Member Services Team on
1300 360 988 or mail@firstsuper.com.au.

What happens next?

We sent a letter to our potentially impacted members in late November with information on these changes. Over the coming weeks, we will be undertaking more communications to reach and support affected members, including direct mail, emails, text messages and outbound calls.