Insurance and consolidation
Will I lose insurance if I consolidate my super?
If you consolidate your super you will lose insurance cover in any account you close. Before combining accounts, it is important to consider your specific insurance needs, check what cover you currently have, and see if it is possible to transfer cover you want to keep.
This is one of the main reasons people should review their super carefully before consolidating.
CareSuper allows members to transfer their insurance before consolidating. This helps maintain existing cover, prevents gaps, and ensures members aren’t left uninsured.
How insurance in super works?
Many super accounts include insurance, which may include:
- death cover
- terminal illness cover
- total and permanent disablement cover
- income protection
The type of cover, level of cover and eligibility conditions can differ between super funds and products.
Find our more about insurance in super
Why insurance can be affected by consolidation?
Insurance through super is attached to an individual account that holds it.
If you transfer your balance out of that account and it closes, the insurance linked to that account will stop. The account you keep may have different insurance arrangements, terms or costs.
Before combining accounts it is important to consider your specific insurance needs, check what cover you currently have, and see if it is possible to transfer cover you want to keep.
What can change when you combine super?
When you consolidate super:
- your old insurance cover will end if you close your super account
- your new account may have different cover levels
- terms, conditions or exclusions may differ
- the cost of insurance may change
This is why it is important to compare accounts before proceeding.
CareSuper members can review their insurance arrangements through Member Online before combining super accounts. This gives members the opportunity to understand what cover they currently have and consider how consolidation may affect it.
CareSuper also allows members to transfer their insurance before consolidating into CareSuper. This helps maintain existing cover, prevents gaps, and ensures members aren’t left uninsured.
What to check before consolidating?
Before combining super, review:
- the type of insurance you have
- how much cover applies
- any eligibility requirements
whether the cover is still right for you what cover may apply in the account you want to keep For some people, insurance is a major reason not to rush the consolidation process, and it is worth checking your cover carefully before making a final decision.
Frequently asked questions
Many funds allow you to transfer your insurance before you start the consolidation process.
CareSuper allows members to transfer insurance cover before consolidating super. This helps maintain existing cover, prevents gaps, and ensures members aren’t left uninsured
Disclaimer
Before combining your super into CareSuper you should consider whether this is right for you and whether you will be charged any fees. You should also check the impact on any insurance arrangements (such as loss of insurance) and other benefits including tax implications. Contact us to find out if you’re eligible to transfer your cover to us before combining accounts. Consider if you want to claim a tax deduction or split contributions, as you won’t be able to do this on the contributions you’ve transferred. Once combined, let your employer know you’ve changed super funds. All future contributions should then be paid to CareSuper.