The Government's insurance in super reforms began on 1 July 2019 with Protecting Your Super (PYS) legislation, and continued with Putting Members' Interests First (PMIF) legislation effective 1 April 2020. Read on to see how it may affect you.
Before 1 April 2020
Basic Death and Total and Permanent Disablement (TPD) cover would be switched on for members when they joined TWUSUPER so long as:
- an employer contribution was received,
- the member was aged between 18 and 70, and
- they had at least $500 in their TWUSUPER account.
Note, if you only had basic Death and TPD cover and your account balance was worth less than $6,000 on 1 April 2020, we were required to remove the insurance from your account on that date (unless you told us you wanted to keep it or we applied a dangerous occupation exemption to your account – see below for more details).
From 1 April 2020
Basic Death and TPD cover will now only be added to members’ accounts in certain circumstances. These are as follows:
- Minimum balance and age: If you have at least $6,000 in your super account, you are aged at least 25, and your account received an employer contribution.
- You opt-in to cover: You can opt-in to basic Death and TPD cover at any time, but will need to be aged 18, have at least $500 in your account and have received an employer contribution for cover to start.
- Dangerous occupation exemption: If we know you work in a dangerous occupation, basic Death and TPD cover will be added to your account where you have at least $500 in your account, you are aged 18, and your account has received an employer contribution. Because most of our members work in a dangerous occupation, we will assume you also work in a dangerous occupation where we do not know about your job – this means cover will be added in the same circumstances. Note, if you do not work in a dangerous occupation you need to tell us and we will stop your cover, unless you tell us otherwise – you can apply to change your insurance group at any time online, or by completing the Application to change insurance group form.
Benefits of insurance in super
We offer a base level of insurance cover – like a safety net – to protect you and your family if you die or suffer from an illness or injury. If you need more than the base level, you can apply for it. Certain jobs within the transport and logistics industry can be dangerous, and the level of cover we offer members may not be available for a similar price under a retail policy.
We work hard with our insurer, TAL, to provide you with cover and affordable insurance fees, but ultimately, the decision to hold insurance cover is your choice.
Consider how much money you and your family would need to support your lifestyle if you could no longer work due to illness or injury. You can use our Insurance cover and cost calculator to find out what insurance you might need and what it might cost.
Members can also receive limited financial advice over the phone* at no extra cost – call us on 1800 222 071 for more information.
* The Trustee has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514 to facilitate the provision of financial advice to members of TWUSUPER (Fund). Advice is provided by TWUSUPER financial advisers who are representatives of IFS. Fees may apply. Further information about the cost of advice is set out in IFS' Financial Services Guide, a copy of which can be obtained by calling 1800 222 071. IFS is responsible for any advice given to you by its representatives.
The cost of providing certain phone-based financial advice services is incorporated into the fees that are applicable to all super accounts. Fees for comprehensive financial advice provided to you either over the phone or face-to-face are charged to you directly and will be set out in your Statement of Advice.