Insurance in super for younger members and members with low super balances
Government changes to protect your super
The government rolled out laws in 2019 aimed at protecting your super savings by making sure your balance isn’t reduced by the cost of insurance that you may not need or be able to claim on.
Want insurance in super?
Putting Members’
Interests First (PMIF)
If you have a MLC MasterKey Business Super account and you’re not at least age 25 and/or your super account balance hasn’t reached $6,000, super rules mean you need to choose if you want to have insurance cover.
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- The PMIF super rules impact younger members and members with low super account balances.
We’re not able to automatically provide insurance cover in super until you’re at least age 25 and your super account balance reaches $6,000 – unless you tell us, in writing you want cover.
These super rules don’t apply if your employer pays for the full cost of your insurance cover.
Your employer may have agreed to pay for all or some of your insurance premiums for you. Your Welcome Kit will explain if your employer has agreed to do this, and details of your insurance cover will be set out in the Welcome Kit and in Your Insurance Summary if your insurance starts after you join MLC.
Any additional contributions to pay for insurance premiums that your employer pays into your MLC MasterKey Business Super account will count towards your concessional contributions cap for tax purposes.
These payments will appear as an employer reimbursement on your statements. We’ll deduct the total amount of fees and insurance premiums due at the end of each month and when your employer has paid their agreed amount, we’ll credit your account with their payment. The deduction and the credit may not occur on the same day.
Please see your Insurance Guide, which is part of your Product Disclosure Statement to find out more about the payment of your insurance premiums for your insurance cover.
Need more information?
Visit the Australia Securities and Investments Commission's (ASIC) Moneysmart website.
Visit the Australian Prudential Regulation Authority (APRA) PMIF webpage.
Consider your insurance in
super options
You need to make a decision about whether or not you want insurance cover in super.
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- The types of insurance cover available, conditions and level of your insurance cover will be specific to the super product you have and are set out in the relevant Insurance Guide, which forms part of the Product Disclosure Statement.
Insurance in super may relieve financial stress for you and your loved ones if you become injured, ill or die. It may be a more affordable way to help with ongoing living expenses and less income if the unexpected happens.
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- Ensure the type and amount of insurance cover will meet your financial needs now and in the future. You also need to know the cost of your cover.
- Review any other insurance you have and make sure you’re not paying for multiple policies you don’t need or aren’t able to claim on.
Your insurance choices
As a member of our super fund, automatic insurance cover is available to you without the need for an application – provided you meet the eligibility requirements.
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- To be eligible for insurance cover, you must be a member of MLC MasterKey Business Super or MLC MasterKey Personal Super, and an Australian Resident, and meet all other eligibility requirements as set out in the insurance policy. You’ll find more information about eligibility requirements in the relevant Insurance Guide, which forms part of the Product Disclosure Statement (PDS).
Keep in mind your super account must have sufficient funds to pay for the cost of your insurance premiums, and your super account can’t become inactive (inactive means your super hasn’t received a contribution or rollover for 16 consecutive months).
Here's a few options for you:
Option 1
Choose to have insurance in super
We’re not able to automatically provide you with insurance until you’re at least age 25 and your account balance has reached $6,000. So, you need to tell us if you want it before then.
Or download the PDF form and once completed, return it to us.
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Option 2
Choose not to have insurance automatically in the future
If you don’t want us to automatically provide insurance, which you’ll pay for, then you need to tell us. We provide it automatically when you’re at least age 25 and your account balance has reached $6,000 (subject to eligibility requirements).
Even if you choose not to have automatic cover, you’ll receive any insurance cover your employer pays in full, from the date your employer starts paying for it. 'What does it mean if I decide I don’t want automatic insurance?
If you’d like to find out more call us on 132 652 or speak to a financial adviser who can help you respond to any changes to laws on super, social security and other retirement issues.
To tell us you don’t want insurance automatically, tick the ‘No, I don’t want automatic insurance cover in the future’ option on the Choose if you want insurance cover in super form and send it back to us.
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What if I've received a cancellation letter?
If you’ve received a letter to let you know your insurance has been cancelled due to the government’s changes, it may include the option to reinstate your insurance cover—provided you take the steps by the date shown in your cancellation letter. We’ll let you know in writing if your cover has been reinstated.
If your insurance is cancelled then your insurance cover will no longer be available to you and you won’t be able to claim for events that happen from the date your insurance is cancelled. Although you won’t be able to claim on cancelled insurance for any events that happen after 31 March 2020, you can still claim for events that happen before then.
If you don’t want your insurance in super reinstated, you don’t need to do anything.
If you change your mind in the future and would like to have insurance, you’ll need to apply for cover and you may need to provide personal, medical and employment information and your application will need to be assessed and approved by the insurer.
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Apply for other insurance cover
You can apply for other types and amounts of cover by completing a form with your personal, medical and employment information. Your application will also need to be assessed and approved by the insurer.
For information about the eligibility requirements, how much you can apply for, what you’re covered for, when it starts and stops, any occupational ratings that might apply, limitations and exclusions and your insurance options—refer to the relevant Insurance Guide.
Your insurance arrangements
If you choose to have insurance in super or apply for cover, you will need to meet the eligibility requirements detailed in the relevant Insurance Guide which forms part of the Product Disclosure Statement (PDS).
If you’d like to find out more, call us on 132 652 or speak to a financial adviser. They can help you with any changes to laws on super, social security and other retirement questions.
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