Protecting Your Super

 

The Federal Government’s Protecting Your Super Package Act comes into effect on 1 July 2019. The package is designed to protect Australians’ super savings from unnecessary erosion by fees and insurance costs.


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Putting members' interests first

 

The Federal Government’s Putting Members' Interests First Act comes into effect on 1 April 2020. This Act is designed to protect members with a balance less than $6,000 and who are under the age of 25 from balance erosion due to having insurance cover they may not need.


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Putting members' interests first

As an eligible member, you received automatic insurance cover when you joined Vision Super.
Recent changes to superannuation laws mean that we will no longer be able to provide automatic insurance cover to eligible members who joined the Fund before 1 April 2020, if the member’s account balance is less than $6,000 and the member has not made an election to keep the cover before 1 April 2020.
This applies to any insurance for death, total and permanent disablement (TPD) or income protection (IP) provided to you automatically before 1 April 2020.

Will I lose my insurance cover?

Any automatic insurance cover provided to you by Vision Super before 1 April 2020, will be cancelled from the beginning of 1 April 2020 if:

  • you have death, TPD or IP insurance cover on that date, which was automatically provided to you;
  • your account balance has not reached at least $6,000 at any point in time between 1 November 2019 and before 1 April 2020 (referred to as having a ‘low account balance’). For this purpose, it does not matter if, after reaching at least $6,000, the account drops below $6,000 at a later point in time; and
  • we do not receive notification from you electing to keep your insurance cover.

Other situations resulting in cancellation of your cover will continue to apply, for example, if you reach the cover cessation age or your account becomes inactive for a continuous period of 16 months. Please refer to the relevant Insurance in your super – additional guide available in the publications section of the Vision Super website.

What if I have applied for voluntary cover?

If you have applied for, and been granted, voluntary death only or death and TPD or IP cover before 1 April 2020, your voluntary cover will not cease due to having a low account balance with effect from the beginning of 1 April 2020. Your application for voluntary cover is a request for cover, and shall be taken to be an election to keep that cover notwithstanding you have a low account balance.

What can I do to keep my automatic insurance cover?

You can tell us you’d like to keep any death, TPD and IP insurance cover that has been automatically provided to you by making an election before 1 April 2020.

When deciding whether to make an election, you should consider your personal circumstances including your current and future insurance needs and the impact of insurance costs on your retirement savings.

How can I make an election to keep my insurance cover?

Simply go to www.visionsuper.com.au/keepmyinsurance to make an election online quickly and easily.

Alternatively, you can send the following statement/s by email:

I, [insert full name and member number] elect to maintain any death, TPD or IP insurance cover that has or will be automatically provided to me in Vision Super before 1 April 2020 and for insurance premiums to be deducted from my account in relation to that cover, even if:

  • my Vision Super account does not have at least $6,000 in it at some point in time between 1 November 2019 and before 1 April 2020; or
  • my Vision Super account is inactive (ie. no contributions or other amounts are received by Vision Super for me) for 16 continuous months.

Ensure that we receive the election as soon as possible and by no later than 31 March 2020.

What happens if I do nothing?

Any default death, TPD and IP cover automatically provided to you before 1 April 2020 will cease with effect from the beginning of 1 April 2020 if your account balance doesn’t reach $6,000 at some point between 1 November 2019 and before 1 April 2020 (if it doesn’t cease earlier for some other reason).

If your account balance increases to $6,000 or more from the date your account was opened and before 1 April 2020 (even if it again reduces below $6,000 before 1 April 2020) you will not have a low account balance as at 1 April 2020 and any death, TPD and IP automatically provided to you will not cease 1 April 2020.

We will contact you if your cover has ceased effective from the beginning of 1 April 2020 due to you having a low account balance.

You should note that if the cancellation of your cover means there is no insurance cover associated with your account, we have not received an amount into your account for a period of 16 months and you have an account balance less than $6,000 as at 30 April 2020 (or half yearly after that), your account balance must be paid to the Australian Taxation Office (ATO) except in certain circumstances, for example, if you have made or amended a binding death benefit beneficiary nomination or have made an investment choice in the last 16 months.

If my insurance cover is cancelled on 1 April 2020 can it be reinstated?

You can apply to reinstate your insurance cover within 60 days of your cover being cancelled and your automatic insurance cover will be reinstated without any medical information.
After cancellation, you will not usually be able to have your cover reinstated unless you apply to the insurer for the insurance cover and meet the insurer’s underwriting requirements which may include providing medical evidence. Any changes to your personal medical situation may make it difficult or impossible for you to obtain cover again. Different terms and conditions may apply to any subsequent cover provided to you by the insurer.

For more information about the circumstances in which insurance cover may be reinstated, see the Insurance in your super additional guide.

Default insurance may apply automatically

If your employer makes a superannuation contribution into Vision Super for you after your insurance is cancelled, new default insurance cover may be applied automatically if your balance is over $6,000 and you are over the age of 25. Any new cover will be subject to eligibility criteria and a new two-year pre-existing medical condition exclusion. We will notify you of this, and if you choose, you can cancel this cover.

Can I change my mind after electing to keep my cover?

Yes – If you tell us you want to keep your insurance, you can change your mind at a later date and cancel your cover at any time. For example, you may wish to cancel your insurance with Vision Super in the future if you have insurance cover elsewhere, either within another fund or outside superannuation.

What if I want to keep only some of my insurance?

You can elect to keep some, but not all of, any insurance cover that is (or will be) automatically provided to you. For example, if you have been automatically provided with both death and TPD insurance cover, you can make an election to keep death cover only, or you can elect to keep a reduced amount of death and TPD cover. Contact us on 1300 300 820 if you want to change the type or amount of your insurance cover and we can provide you with the form of the written election you must make.

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