News18 March 2019

Changes to insurance are coming

Candice
Candice
Author

Did you know insurance in super is automatically provided to most members when they join Tasplan?

Generally, everyone with a super account is automatically covered by life and disability insurance. This was introduced to tackle the problem of many Australians being under-insured.

5 advantages of having insurance through super

1. Confidence and peace of mind knowing that you have some protection in place. You can increase, decrease or cancel this cover - it’s your choice.

2. Being financially independent in the event of something happening to you.

3. Insurance is paid for from your super account which means it doesn’t affect your take-home pay.

4. Bargaining power – because we’ve negotiated competitive fees for our members, you’re likely paying less for your level of cover than if you were to buy insurance yourself.

5. Tax benefits of paying for your insurance before-tax – which you don’t have when you buy insurance outside of super.

Changes are coming!

On 1 July 2019, insurance for Tasplan members will be changing. This is as a result of:

  • recently passed Protecting your superannuation laws
  • Tasplan choosing to adopt the Insurance in Superannuation Voluntary Code of Practice and
  • the appointment of our new insurer, MetLife.

What are the Protecting your superannuation changes?

The Federal Government’s Protecting your superannuation package – announced in the 2018-19 budget – is a package of reforms designed to protect Australians’ super savings from unnecessary erosion by fees and insurance premiums.

What’s the Insurance in Superannuation Voluntary Code of Practice?

The Insurance in Superannuation Voluntary Code of Practice sets out the minimum requirements for insurance within super funds. It has five objectives which we agree to be bound by. They are:

  1. improving the insurance in super offered to you, and the processes by which we provide insurance benefits to you
  2. being: a) transparent b) fair c) respectful d) honest e) timely.
  3. offering automatic insurance that’s appropriate and affordable, and not inappropriately eroding retirement incomes
  4. communicating to you in a clear and timely way and using plain language, to assist your understanding of the role of insurance in superannuation and the details of your insurance cover
  5. playing a visible role in the claims process, and ensuring you receive regular updates as well as a decision on your claim in a reasonable timeframe.

Who is MetLife?

MetLife has been a specialist provider of life insurance products in Australia since 2005 and insures millions of Australians. MetLife has a strong cultural fit with Tasplan and offer a track record of delivering solutions that are driven by technology and insights with a clear underwriting and claims philosophy and competitive pricing for members. MetLife was chosen by Tasplan after an extensive tender process.

What next?

If you’re affected by these upcoming changes you’ll receive a detailed letter from us in May including what, if any, action you’ll need to take. In the meantime you can:

 

1 Source: www.ricewarner.com/insurance-through-superannuation/

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