What you get with Prime Super

Insurance cover is a valuable inclusion in your super, designed to protect you and your family when you need it most.

Prime Super’s insurance* options provide you with peace of mind knowing you are covered, should the unexpected occur. As a member of Prime Super, you can access Death Only, Death & Total and Permanent Disability (TPD), Terminal Illness and Income Protection insurance at competitive rates which can be tailored to suit your individual needs.

*Subject to eligibility, including underwriting assessment for cover over and above Default cover.

Default cover for Prime Super members

When you join Prime Super you are provided with a Default* level of Death & TPD cover (with Terminal Illness), which is a basic level of cover designed to provide some support to you and your family in the event that you become terminally ill, are injured, or die.

*Subject to eligibility.

Insurance is changing

Protecting Your Super Package (PYSP) legislation

The Australian Parliament passed legislation, the Protecting Your Super package (PYSP), on 1 July 2019. The package is designed to reduce erosion of superannuation account balances by:

  • making changes to the fees funds can charge,
  • establishing rules around when insurance cover can be provided to members with inactive accounts, and
  • facilitating the consolidation of low balance inactive superannuation accounts.

The PYSP insurance changes

It’s important to note that your default insurance cover in Prime Super may be cancelled if your member account has not received an eligible contribution and has been inactive for 16 continuous months or more, meaning that no contributions or rollovers have been made to your account in that time.

You can elect to keep your insurance cover by:

  • Logging in to your secure MemberOnline account and opting to keep your insurance cover OR
  • Completing and returning an Election to maintain all or some insurance cover form OR
  • Contributing to your account, or rolling over funds from another super fund into your Prime Super account, before your account has been inactive for 16 months.

Putting Members' Interests First (PMIF) legislation

The Australian government passed new legislation, the PMIF legislation, which took effect on 1 April 2020. If you’re a member who intends to join Prime Super and have an account balance of less than $6,000 or are under the age of 25, you may be impacted by this legislation.

The intent of the PMIF legislation is to help young Australians and members with low account balances to achieve better growth outcomes on their super account balances.

Members who may be impacted by the PMIF changes

The PMIF legislation mandates superannuation funds not offer default insurance cover until a member's account balance reaches $6,000 unless the member communicates to the fund in writing and elects to keep their default insurance cover.

The legislation also requires that from 1 April 2020, new members joining the fund are not offered default insurance cover until they are age 25 and have a balance of at least $6,000 in their super account.

Opting in to receive Default insurance cover

If you are under age 25 or have a balance of less than $6000, you can opt in to have Default cover by making a request in writing to Prime Super or by doing so on the Member Application form for Super Division/Health Division or Education Division.

Important information

Eligibility criteria, conditions and exclusions apply to insurance cover with Prime Super. Prime Super has three divisions – Super, Health, and Education. You should read the appropriate Member Guide before deciding whether the insurance offered is appropriate for you. Please note you will be allocated to the Super division if you are not in the Health or Education divisions.

Insurance premiums are deducted from super balances which can reduce the amount of money available for retirement. If you have a low account balance, or you are no longer receiving contributions to your account, you should consider if maintaining insurance cover is right for you. If you would like information about insurance in super, please visit ASIC’s MoneySmart website or speak to a licenced Financial Adviser.