Changes to help younger members grow their super

We’re changing the starting age that basic cover is automatically provided because we believe members under the age of 25 are at greater risk of super balance erosion – and generally have lesser insurance needs.

That’s because younger members are less likely to have children or other dependants or significant debt. They generally have lower super balances and working patterns may be casual or part time. There is also the likelihood that younger members will earn significantly lower salaries than older members.

We believe that younger members may be better served by devoting all of their super savings to their retirement and having the option to apply for cover if they need it.

Under the current arrangement, basic age-based Death and TPD cover for these member could have started when they turn 20.

Now that won’t happen. Instead this cover will start at when they turn 25 (if they’re eligible). We’re sending a significant event notice to all affected members to let them know about this change. Any cover they have now won’t change.

There’s no change to the insurance arrangements for existing members aged 20 – 24. Their insurance cover remains the same.

If their cover lapses, and we receive a new employer contribution for them, they must be 25 and over to be eligible for their basic age-based cover to start again. Any cover they’ve cancelled won’t start again.

 

From 27 October 2018, basic age-based Death, TPD and Income Protection cover will automatically start for eligible members when they turn 25.

Yes, absolutely. Everyone is different. If a member needs insurance before they turn 25, they can apply for it anytime. They’ll generally need to provide health information for our insurer to consider.

If their application for cover is approved, the cost of it will be deducted from their super account monthly.

Some reasons members might think about getting cover can include:

• needing their salary to cover day-to-day expenses
• having debts such as a mortgage, personal loan or credit card
• participating in competitive sports, or
• supporting someone financially.

We encourage all members to consider their individual insurance needs.

Our insurance calculator is a useful tool that members can use to work out the right level of cover for them and how much it would cost.

 

That’s no problem. If members decide they don’t want cover to automatically start when they turn 25, they can opt out by cancelling their cover (even though it hasn’t started yet). This can be done through the member’s online account or by downloading and completing the Cancel your insurance form

If a member isn’t in active employment when their age-based cover automatically starts, it will be limited cover. Their full cover will usually start once they’ve been in active employment for two months in a row after their limited cover starts.

Active employment means that the member is:

• employed or self-employed, and
• capable of doing the normal duties of their job for at least 30 hours a week (even if they are not working 30 hours a week).

Limited cover means that the member won’t be covered for any illnesses or injuries that they already had before they got cover. There are a number of reasons why cover can be limited cover.

For full details about when cover may be limited cover and for how long, active employment, and when cover starts, see our Insurance in your super guide.

Members can call AustralianSuper on 1300 300 273 and ask to speak with a member of our Financial Education and Advice Team (FEAT)* for simple, personal advice about their insurance options.

* The financial advice you receive will be provided under the Australian Financial Services Licence held by a third party and is therefore not the responsibility of AustralianSuper.