FAQs about upcoming insurance and legislation changes
On 1 August, CareSuper’s insurance offering is changing. We answer your questions about how it’s different, and why.
And on 1 July, the Federal Government’s Protecting Your Super (PYS) package comes into effect. PYS aims to stop members’ accounts being eroded by fees. This means members with ‘inactive’ accounts will have their insurance cancelled so they no longer pay premiums. If you’re affected by this and you want to keep your cover, find out how below – and make sure you tell us before 28 July.
At CareSuper we conduct periodic reviews of our insurance where we look at several factors, including how appropriate our offering is to our members’ needs, the product features we’re offering, the cost of cover and external factors like changing legislation.
In our latest review, we decided to update our offering to make it simpler and more appropriate for our members at different ages. We also made changes to align with the Federal Government’s recent Protecting Your Super package.
From 1 August 2019 the premiums for our income protection cover will be annual gender-based premiums calculated for each $100 per month of income protection cover you hold. As well as gender, premiums will continue to be based on age, occupation, waiting period and benefit period.
There are no other changes being made to income protection cover. This means existing limits continue to apply. For example, you’ll be able to apply for cover of up to 85% of your income, up to a maximum income of $423,530 per annum, plus a further 60% for the next $200,000 per annum of your income for the first two years of the benefit payment period.
Currently, you’re able to apply for the early release of your insured death benefit if you suffer from an illness that will lead to your death within 12 months (eligibility conditions apply). On 1 August 2019, that timeframe changes to 24 months. This means terminally ill members (if eligible) may be able to access their death cover earlier than was previously the case.
Our new offering considers members’ needs at different ages, product features, cover amounts and costs — as well as external factors. We’ve also seen major legislative changes with the Federal Government’s Protecting Your Super Package, which requires insurance cover to be cancelled in certain circumstances.
Our new offering takes all this, in addition to recent claims experience, into account. For some members it means the cost of cover will increase.
We’re always striving to deliver value for our members and insurance is no different. The last time there was an increase in the cost of insurance cover was 2017.
We’re more closely aligning our standard insurance cover levels to what our members typically need at different ages. Typically, our younger members who are just starting out are less likely to need as much insurance, so we’ve reduced the standard cover for these members.
We’re aiming to meet the needs of most of our members, but you can always change or opt out of the standard age-based insurance design if it doesn’t suit you.
Our insurance changes calculator can help you examine the difference between your projected insurance cover, as at 1 August 2019, under the current offering and the new offering. It also lets you see how much it will cost to change your cover if you’d like to.
Your significant event notice has detailed information on the changes and includes some case studies to help you compare the new and current offerings and see what’s changing.
If, from 1 August 2019, you’ll have less cover than you have now, and you’d like to retain your existing level of cover, you can fix the difference by applying for additional fixed cover (without needing to provide evidence of good health). Simply complete and send us a Changing your insurance cover (on 1 Aug 2019) form before 31 July.
Where you are aged 15-29 years and have more than one unit of death cover, or you are aged 30-69 years and have more than four units of death cover, we will automatically provide fixed death and TPD cover for the difference, where your cover would have reduced on 1 August under the new offering. You can always opt out of this fixed cover if it does not suit you using the Changing your insurance cover (on 1 Aug 2019) form.
You can also change cover at any time after 1 August 2019, but please note if you want to increase your cover you may need to provide evidence of good health.
Dial up means to increase your insurance.
This option is available to members whose death and/or TPD insurance cover will decrease on 1 August under our new offering.
The insurance letter or email we sent you shows if this applies to you.
If the dollar amount shown for death and/or TPD cover under our new insurance offering is lower than the amount shown under our current insurance offering then you can choose to ‘dial up’ (increase cover) to keep the higher amount by adding cover. This will be fixed cover. Your fixed cover will be for the difference between our new offering and current offering amounts and you will need to pay extra for it.
Some members may automatically receive additional fixed cover– refer to your SEN for details.
Use this ‘dial up’ option if you want to keep your existing amount of death and/or TPD cover and understand you’ll need to pay extra to do so.
Dial down means to reduce your insurance cover.
This option is for members whose insurance costs will increase on 1 August (or they would like to pay less) under our new offering. By selecting this option you can keep the cost of your cover around the same as what you are currently paying – as long as you’re comfortable with less insurance cover.
The insurance letter or email we sent you shows if the cost of your cover is going up.
You can reduce your death and/or TPD cover amounts and the cost will also go down. If you have automatically received additional fixed death or TPD cover, you can opt out of this to reduce the cost.
There are different ways you can decrease the cost of income protection cover: by choosing a longer waiting period, reducing the benefit period or reducing the value of your cover.
Use this ‘dial down’ option if you want to reduce the cost of your death, TPD and/or income protection cover.
It’s easy to change your cover from 1 August 2019 if you’d like to. You can dial up, dial down or opt out of your cover from that date, without needing to provide evidence of good health, by completing a Changing your insurance cover (on 1 Aug 2019) form. Just make sure you send it to us before 31 July 2019.
You can also make other changes to your insurance at any time. You can apply to change your occupational category or cancel your cover through MemberOnline.
There will be a period of limited access for insurance from 1 to 5 August 2019 while we implement the changes. During this time, you won’t be able to change your insurance or add or change your beneficiaries.
The Government’s Protecting Your Super package includes a number of changes to superannuation laws that look to ensure offerings for insurance in super are appropriate, and members aren’t paying for insurance they may not know about or premiums that inappropriately erode their retirement savings.
The new laws require us to cancel your insurance cover if your account becomes ‘inactive’. Your account becomes inactive when no contributions or rollovers have been received for at least 16 consecutive months.
Under Protecting Your Super laws, you have the option to keep your cover if you let us know before your account becomes ‘inactive’. Alternatively, you can make a contribution or rollover super into CareSuper to keep your account active.
The Protecting Your Super laws come into effect on 1 July 2019. If your cover is due to be cancelled between 1–28 July 2019, as a CareSuper member you now have an extension until 28 July 2019 to tell us you want to keep your cover.
If you don’t elect to keep your cover, it will be cancelled effective from the date you become ‘inactive’, on or after 1 July 2019.
Cover may be reinstated if you’re an employer sponsored member (i.e. a member of the Employee Plan or a corporate insurance arrangement) and an employer contribution is received for you. Terms and conditions apply including an active employment test and there will be a break in your cover. See your Insurance Guide from 1 August 2019 for more information.
If you want to keep your cover, you’ll need to let us know before your account becomes ‘inactive’. You can let us know online (you’ll need your Important information about your insurance email or letter handy) or you can complete and return a Keep or cancel my cover form.
You’ll also be able to keep your cover if you make a contribution or roll super into your account before your account becomes ‘inactive’.
If you have an insurance claim in progress on 31 July 2019, you’ll be covered under the insurance offering that applied at the date of the event. If you’re unsure about the impact of these changes on your claim, call us on 1300 110 650.
These insurance changes apply for events that happen on or after 1 August 2019. If you claim for an event before this date, you’ll generally be covered under the insurance offering that applied at the date of the event. If you’re unsure about the impact of these changes on your claim, call us on 1300 110 650.
Under government legislation, when your employer selects a super fund for your workplace, they must choose one that provides a level of insurance cover automatically to eligible MySuper members. We provide our Employee Plan members with automatic ‘standard’ death and total & permanent disablement (TPD) cover when they join. How much you’re automatically covered for depends on your age. From 1 August 2019 premiums for age-based cover will be based on age and gender.
If you have fixed cover or income protection your premiums will be determined by your age, occupation and gender.
If your employer is making super contributions for you, there’s a good chance you’re an ‘Employee Plan’ member – and it means you probably have automatic standard death and TPD cover as part of your super account.
If you are not linked to an employer and make your own contributions to your super, or you become a CareSuper member due to a family law split, you are a Personal Plan member.
Personal Plan members do not receive automatic insurance but can still apply for cover (subject to assessment and acceptance by our insurer).
Income protection cover provides a temporary replacement income if you are unable to work due to illness or injury (specific conditions apply). The purpose of income protection is to help you continue to pay your bills while you’re taking the time to recover and recuperate from an injury or illness.
Death cover provides a lump sum payment to your beneficiaries if you die, to help ensure the wellbeing of the people who depend on you (certain restrictions apply). You may be able to access your death benefit if you’re terminally ill (conditions apply).
Total & permanent disablement (TPD) cover provides a lump sum payment if you are never able to work again due to injury or illness. This payment could be used to cover medical bills and to ensure the overall security of your family and your home.
If your employer has established a particular insurance arrangement for you through your CareSuper membership, this is called a ‘corporate insurance arrangement’ (CIA). This insurance arrangement may differ from the standard insurance arrangement available to Employee Plan members. If you’re a member of a CIA, you can read more about your insurance in your Corporate Insurance PDS and Corporate Insurance Guide, as well as your annual statement.