The Putting Members Interests’ First (PMIF) legislation has been put in place to help protect Australians’ retirement savings from being eroded by fees and costs.
PMIF prevents anyone under 25 years of age from receiving default insurance in super when they open a new super product on or after 1 April 2020. It also prevents members with less than $6,000 in their account from being issued with default insurance.
Members whose account balances have not been equal to or above $6,000 since 1 November 2019 will lose any default insurance attached to their account on 1 April 2020.
However, members who wish to continue their insurance can simply opt-in to insurance cover.
Once a member reaches the age of 25 and has their account balance reach more than $6,000, default insurance will be reinstated.
It’s also important to note that the cancellation of insurance will not affect any cover for an event that occurred while your insurance was still active. So you can still make a claim for an illness or injury that occurred before 1 April 2020, if you were eligible and held valid insurance prior to that date.
Find out more about the appropriateness of your cover, an how to opt-in for insurance here.