Under the government’s Your Future, Your Super changes, your super fund will follow you when you change jobs. But what does this mean for your insurance cover?
Super fund ‘stapling’ – wherever you go, your super fund will follow
To assist in reducing the number of multiple super accounts in the system, lowering costs and making it easier to keep track of your super throughout your working life, the federal government introduced super account ‘stapling’ as part of its YFYS reforms package.
Essentially, this means that instead of having a new super account opened by your new employer each time you change jobs, you’ll now be ‘stapled’ to your current super fund (or the first fund you join when you first start work) which will automatically move with you from job to job. That is, unless you actively choose to change from your stapled fund to a new one in the future.
What does this mean for your insurance?
When it comes to your insurance cover, stapling won’t really be an issue, unless you change the type of work you do. Jobs in heavy or dangerous industries, such as construction or mining, attract higher insurance premiums because the risk of injury or death is higher. Occupations in low-risk environments, such as offices, will generally attract lower premiums.
This means, for example, that if you joined the workforce as a labourer and you’re stapled to your first fund, you may be charged higher premiums that applied to your first job even if you change to a lower-risk job in a café or hotel.
On the other hand, if you move from a low-risk job to one that’s high risk, your insurance may not cover you for certain activities that are part of your new role.
What do you need to do?
If you change jobs in the future, check that the insurance cover in your existing fund continues to provide the level of cover you need, especially if your new job involves a different occupational category and risk. If it doesn’t, speak to your fund about your change in circumstances and whether your existing fund can help ensure you’re appropriately covered and how any changes might affect your premiums.
You’re in control
Being stapled to a fund doesn’t and shouldn’t mean that your super is a ‘set and forget’ thing. And this includes your changing insurance needs as you move through life and its phases. At Hostplus, we offer flexible insurance options that can change with you as your life unfolds. Our website has handy calculators that can help you work out how much insurance you may need, as well as how much your insurance may cost.
If you choose to consolidate your super into Hostplus this means you’ll only pay one set of fees and insurance premiums, plus you’ll get all the benefits of our competitive performance, and the freedom to choose the investment option that best suits your needs.
Need advice?
Getting the right advice today could make a difference to your insurance. That’s why our financial planners are available face to face, via phone or video conference to help you take control of your future.
Advice on insurance within your Hostplus account is available from our superannuation advisers at no additional cost. It can help you to understand the type and level of cover best suited to your particular needs and life stage.
For more information, call us on 1300 303 188 or book a callback to make an appointment.
The information in this article is correct as at time of publication.
Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198.
This information is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available at hostplus.com.au before making a decision about Hostplus. For a description of the target market, please read the Target Market Determination (TMD), available at hostplus.com.au.