Superannuation - Sandhurst Trustees
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Insurance in super

If life takes an unexpected turn, having insurance through super can help look after you and your loved ones financially.

Our Insurance in super - made simple flyer helps you understand the basics of how insurance in super works, and what your options are.

Insurance is included when you join Bendigo SmartStart Super (BSSS)

If you’re eligible, you’ll receive default Death and Total and Permanent Disablement (TPD) insurance on joining, unless you choose to cancel it.

Read our BSSS Insurance in super fact sheet to learn all about what type of insurance cover is automatically included when you join.

Need more insurance cover?

You can also apply:

  • for Income Protection cover;
  • to tailor your Death and TPD cover; and/or
  • to transfer cover from an existing insurance policy.

Your annual fees and insurance premiums are paid directly from your super account, so there is no need to worry about additional out-of-pocket expenses.

Legislation changes

There have been some recent changes to superannuation legislation introduced by the Federal Government that may have an impact on your retirement savings and the insurance cover you hold in your super account.

Protecting Your Super

The government passed new laws which come into effect on 1 July 2019. These laws are referred to as ‘Protecting your Super’ legislation and are designed to protect the balance of super accounts by reducing unnecessary fees and encouraging the consolidation of accounts. There are three parts to the new laws which may impact you;

  1. Cancellation of insurance cover in inactive accounts

    From 1 July 2019 we will be unable to provide insurance cover in your super account if we have not received an amount into your account in the last 16 continuous months, unless you instruct us in writing that you wish to retain your cover. You can advise us in writing that you wish your cover to continue while your account is inactive by completing the Insurance Opt-In Form. You can also complete your opt-in request online by logging in to your account.

  2. Fee cap

    From 1 July 2019, there will be a 3% cap on admin and investment fees on accounts below $6,000. As a superannuation trustee, we will be required to refund amounts charged in excess of that 3% cap within 3 months of the end of the financial year.

  3. Automatic transfer of inactive and low balance accounts to the ATO

    From 1 July 2019 we will be required to transfer your super account to the ATO if the balance of your account is less than $6,000 and the account is inactive for 16 continuous months. An inactive account is an account where no money has been received over a period of 16 continuous months. Within 28 days of receiving this money the ATO will aim to transfer inactive accounts to an active super fund if you have one, where the transfer would bring your total balance to $6,000 or more.

    Things you can do

    To ‘reactivate’ your account, you can make certain changes to your account such as:

    • changing the investment strategy,
    • making a binding death nomination or
    • changing your insurance cover in your account

Insurance in Superannuation Code of Practice

We know how important it is for you to understand and manage the insurance cover available through your super.

That’s why we have adopted the Insurance in Superannuation Voluntary Code of Practice (Code) that commenced on 1 July 2018.

What is the Code?

The Code provides guidelines and a set of standards for superannuation funds to adopt when providing insurance to its members. It aims to improve the insurance offered and the processes by which insurance benefits are provided to members in the super industry.

This is the first time the industry has set a standard for the provision of insurance cover through super. It has been developed by the Australian Institute of Superannuation Trustees (AIST), Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC).

You can access a copy of the Code here.

When will the Code be implemented?

We already comply with many parts of the Code and are working to implement any outstanding items by no later than 30 June 2021.

Our transition plan (effective as at 30 June 2019) provides a description and timeline of when we expect to fully comply with each of the items of the Code and is available here.

 


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