Recent changes to legislation, called Putting Member’s Interests First (PMIF), aims to stop members’ retirement savings being eaten away by insurance premiums for cover that isn’t right for them and will be coming into effect 1 April 2020. So, what is PMIF and will you be affected?
Putting Members’ Interests First
PMIF makes life and Income Protection (IP) insurance in superannuation optional for people who are under the age of 25 or for people who have an account balance less than $6,000 irrespective of age. Essentially, the changes are ensuring members are conscious of the level of cover they have in super and can make a decision whether or not they want to keep it.
Will I lose my insurance?
If you have automatic insurance cover which was provided to you by Vision Super before 1 April 2020, your cover will be cancelled on 1 April 2020 if:
- Your account balance has not reached $6,000 or more since 1 November 2019; and
- we do not receive notification from you electing to keep your insurance cover.
We have sent out letters, emails and SMSs to those who are affected by these changes, but if you’re still unsure, please don’t hesitate to contact us.
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 and no election has been made. 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 under PMIF. Your application for voluntary cover is a request for cover, and shall be taken to be an election to keep that cover notwithstanding having a low account balance.
Is insurance cover right for me?
No-one expects the worst to happen but having the right insurance in place could help you and your family financially should the worst happen. And, the premiums are deducted from your super automatically as opposed to your take-home pay. Before making a decision, you should check the relevant Vision Super PDS and Insurance in your super – additional guide for more information on insurance cover and determine whether it is right for you.
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 31 March 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.
Once you’ve made a decision, there are a few ways you can elect to continue your cover.
Online: simply go to http://www.visionsuper.com.au/keepmyinsurance to make an election online quickly and easily.
Send us an email: Send an email to firstname.lastname@example.org with the following statement:
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.
While we cannot take your request to keep your insurance via a phone call, we can confirm if you’re affected and walk you through the process of sending us a confirmation, so don’t hesitate to get in touch. The Member Services team can be reached on 1300 300 820 Monday to Friday between 8:30am and 5pm.