Campaign Image Banner Small Image

Changes to automatic insurance cover

New legislation: Putting Members’ Interests First

On 1 April 2020, new government legislation comes into effect to help protect your superannuation balance. Known as Putting Members’ Interests First, this is a set of changes to insurance cover that applies to Australian superannuation accounts.

This page explains how this will affect some LGIAsuper members.

Summary of changes

Today, most LGIAsuper members automatically receive insurance cover when they join us. The amount and type of insurance received is determined by factors such as your age, the date you joined LGIAsuper and how you are employed.

Under the new Putting Members’ Interests First legislation some members will need to let us know if they would like to have insurance, instead of receiving automatic insurance cover. 

From 1 April 2020, this change will apply to:

  • Existing members whose superannuation balance has not been $6,000 or more from 1 November 2019.
  • New members who open an LGIAsuper account with a superannuation balance of less than $6,000 (regardless of age).
  • New members aged under 25 years who open a new superannuation account with LGIAsuper (regardless of account balance).

As required by the new legislation, LGIAsuper has already notified existing members whose superannuation balance has not been $6,000 or more from 1 November 2019. We will be required to cancel these members’ insurance cover on 1 April 2020 unless they let us know they would like to keep it or their balance reaches $6,000 or more by 31 March 2020. Read our important change notice here.

What do you need to do?

If you are an existing LGIAsuper member and would like to keep your LGIAsuper insurance cover, you can do this by:

FAQs about the changes

  • What is changing?

    The new legislation means that anyone aged under 25 years who opens a new account with LGIAsuper, and all members with a superannuation balance of less than $6,000, will have to let us know if they would like to have insurance.
  • Why is it changing?

    The legislative reforms are being put in place to ensure members’ superannuation balances are not eaten away by insurance premiums that may not be needed.
  • When are the changes effective?

    The changes come into effect on 1 April 2020.
  • I am under 25 years old, what do I need to do?

    You will need to let us know if you would like to keep your insurance cover if you are an existing LGIAsuper member and your superannuation balance has not been $6,000 or more from 1 November 2019.

    From 1 April 2020, all new members aged under 25 years (regardless of balance) will no longer get automatic insurance cover through their superannuation and will need to let us know if they would like to have cover. 

  • I am over 25 years old and have a superannuation balance of less than $6,000. Am I impacted?

    Yes, you will need to let us know if you would like to keep insurance cover if you are an existing LGIAsuper member and your superannuation balance has not been $6,000 or more (regardless of age) from 1 November 2019.

    From 1 April 2020, all new members with a balance of less than $6,000 (regardless of age) will no longer get automatic insurance cover through their superannuation and will need to let us know if they would like to have cover.

  • I am over 25 years old and have a superannuation balance of more than $6,000. Am I impacted?

    No, there is no impact to you. If you are a current LGIAsuper member with insurance and you balance is more than $6,000, your insurance cover will continue, without change.

    For new LGIAsuper members, you will receive automatic insurance cover when you join LGIAsuper if your balance is over $6,000. The amount and type of insurance received is determined by factors such as your age, the date you joined LGIAsuper and how you are employed.

  • I have heard there is an exception for members who work in dangerous occupations?

    For members who work in dangerous occupations, having insurance can be especially important and often it can be difficult to get cover outside of your superannuation account. If you think that you work in a dangerous occupation and would like help to keep your insurance cover, please contact us on 1800 444 396.
  • How do I keep my insurance cover

    If you are an existing LGIAsuper member and would like to keep your insurance cover, you need to let us know by visiting lgiasuper.com.au/keepmyinsurance. Your current insurance cover will be shown, and you will have the option of selecting ‘Yes, keep my insurance’.
  • What happens if I decide not to keep my insurance cover?

    If you decide not to keep your insurance cover, you will not be covered unless your superannuation balance reaches $6,000 when automatic insurance cover will start.
  • I didn’t even know that LGIAsuper offered insurance; do I have insurance?

    Most LGIAsuper members automatically receive death and disability insurance as part of their default insurance cover. However, the insurance benefits you automatically receive depend on your age, when you joined LGIAsuper and how you are employed. 

    To see what insurance cover you have, you can log in to your account – use the buttons at the top right of this page, or visit Member Online.

  • Why should I have insurance cover?

    LGIAsuper’s insurance benefits can help protect you and your family against the unexpected. We offer affordable and flexible insurance for a wide range of financial and lifestyle needs. Read more about our insurance cover.

    You can also use our insurance calculators to see what level of cover might be best for you, and how much this will cost.

  • Why would I need insurance before I am 25 years old?

     

    There are situations when you may need insurance cover before you are 25 years of age, such as providing for children, or paying debts such as a mortgage. If you haven’t got insurance and your situation changes, you can apply for cover anytime.

    Download our Insurance guide for more information and how to apply.

  • My insurance has been cancelled; how do I reinstate it?

    If you change your mind after your insurance cover is cancelled, it can be reinstated if you tell us within 60 days of it being cancelled with no penalty or loss of cover. Reinstatement will take effect from the date your insurance cover ceased.

    To reinstate your cover, your account must have enough funds to pay the premium owed for the period your cover was cancelled.

  • Where can I get more information?

    Download our Insurance guide for more detailed information. The guide includes an application form, exclusions, increasing or decreasing your cover, and making a claim.
woman using device

View your cover

Visit Member online to check your level of insurance cover.


calculation

Calculate your ideal level of insurance

User our insurance calculators to see what level of cover might be best for you.
financial advice

Get Financial Advice

Let our expert financial advisers help you create a plan for the future.