Like most superannuation funds, Virgin Money Super provides insurance cover to our customers to ensure you’re covered in the event of serious injury or death – events of which you or your family may not be able to afford out of pocket.
Legislative changes in 2019 introduced a few new rules around who and when customers are eligible for insurance, as well as when it might be cancelled. We’ve broken down all the information below so you know when you will or won’t be eligible for insurance plus, when it might be cancelled.
Don’t forget you can call us at any time on 1300 652 770 if you need help understanding your insurance options, or to confirm whether or not you have insurance.
Under the new rules put into place by the Australian Government, known in super land as “Putting Members’ Interests First” (or PMIF) and “Protecting Your Super (or PYS), Virgin Money Super is able to provide Automatic (also known as default) insurance based on your eligibility and the level of activity you have in your account with us.
As a general rule, to be eligible for and retain Automatic (default) insurance cover you need to meet the following eligibility criteria:
- Be aged 25 or over and/or,
- Have a balance of $6,000 or more and/or,
- Be receiving regular contributions into your super. If your account becomes inactive for 16 months you will be at risk of losing your insurance.
If you are not eligible for automatic insurance, you would need to opt in to receive insurance through your super.
New Events Cover
For new customers who are eligible on the date of join, or for customers who become eligible while they are a Virgin Money Super customer, automatic insurance will commence after receiving a contribution or rollover. This cover will be limited to ‘New Events’ cover for 12 months. After 12 months, your cover will be converted to full cover provided you have been ‘At Work’ for 30 consecutive days, on or after the expiry of the 12 months. If you were not ‘At Work’ at the time your cover is expected to be converted, your cover will remain as ‘New Events’ until you have worked 30 consecutive days.
For customers already receiving a contribution or rollover and have not opted-in to receive insurance, your cover will commence upon meeting eligibility criteria.
Under 25 or have a balance of less than $6,000?
Under the Putting Members' Interests First legislation (PMIF) the government has introduced new rules to help young people and those with low account balances by removing insurance cover which can erode or prevent your super balance from growing. From 1 April 2020 Virgin Money Super is not, by law, able to automatically provide insurance cover to anyone under the age of 25 and/or with a balance of $6,000 or less.
This legislation is in addition to the Protecting Your Super Package (PYS) legislation introduced by the government on the 1 July 2019, designed to protect member’s super savings from unnecessary fees and insurance premiums on inactive low-balance accounts.
How we apply the rules:
New Customers: Anyone under the age of 25 and/or has a balance of less than $6,000 will not be given Automatic Insurance at the time you join the fund. At the time you turn 25 and your balance reaches $6,000 or more, your insurance will automatically kick in and premiums will begin to be deducted from your account.
But don’t worry insurance is still available if you want it. If you are under 25/or your balance is less than $6,000, you can simply opt in for insurance with Virgin Money Super via the online form. Premiums will then start to be deducted from the time your first contribution is made to your account. Premiums will then start to be deducted from the time your first contribution is made to your account. New customers have 60 days from their date of join to make an election to opt-in to insurance and received contribution. Customer who have opted in will receive ‘New Events’ cover for 12 months. After 12 months, your cover will be converted to full cover provided you have been ‘At Work’ for 30 consecutive days, on or after the expiry of the 12 months. If you were not ‘At Work’ at the time your cover is expected to be converted, your cover will remain as ‘New Events’ until you have worked 30 consecutive days.
Existing customers: Anyone who, as at 1 April 2020, had super ofr less than $6,000, will have had their insurance automatically cancelled At this time we were required by law to cancel your insurance, and insurance premiums will have stop being deducted from your super balance with Virgin Money Super.
Not making regular contributions?
The Protecting Your Super legislation (or PYS) requires that if you have not put any money into your account, for example through your employer contributions or rolling over from another fund for a period of 16 months your insurance cover will be cancelled.
How we apply the rules:
When we see that you have not put any money into your super account we will cancel your insurance cover and stop deducting insurance premiums from your super balance. Before this happens, you will receive a notice from us prior to cancellation where you can opt in to insurance.
Some important info!
If you have more than one super account it is important you assess your insurance needs and requirements across all options. When cancelling your insurance, we make our assessment based on the balance and transaction history seen in your Virgin Money Super account. Why not take some time today to work out what you have and what you might need.
You can choose to keep or not have insurance at any time.
Regardless of the rules it is important to remember you can choose to keep or cancel your insurance at any time. For more information jump over to the insurance page on your options or refer to the Insurance Guide.
If you’re not sure if you have insurance or not, or want to talk though your options our Customer Care Team are here to help. Call 1300 652 770 to request the relevant form.