You're off the hook with insurance in super till you turn 25, but then what?
Turning 25 or building your super to more than $6000 might be an opportunity to consider life and TPD insurance through your super fund.
New rules around super which came into effect in April, stopped automatic insurance for people aged under 25 or with balances below $6000.
Young people could still opt-in if they want insurance - perhaps because they had dependants or shared obligations - but it was no longer automatically provided through their super.
These rules were part of the Government's Protecting Your Super initiative, which aimed to ensure super savings were not eroded by unwanted insurance costs.
But once someone meets the requirements, by turning 25 or reaching a super balance of $6000, what happens next?
There's no rule instructing super funds how to handle members reaching those milestones. Instead, each fund has its own process, says Association of Financial Advisers (AFA) vice president Sam Perera.
The Association of Superannuation Funds of Australia (ASFA) expects the fund to contact a member when they turn 25 to let them know that automatic insurance is about to kick-in, and that they can cancel or opt-out if they wish.
"ASFA recommends individual members should still check with their super fund as fund insurance policy rules may differ," says ASFA deputy CEO Glen McCrea.
According to Aware Super, members are eligible for automatic insurance cover if they are an employer sponsored member, aged between 25 and 70, have an account balance of $6000, and have not previously had automatic cover in their account.
Insurance is activated for Aware Super members when the fund receives the super guarantee amount and these eligibility requirements have been met.
Again, people of any age and balance are able to opt-out of any cover they don't require.
According to MLC, people who reach age 25 with a super balance over $6000 will automatically receive insurance.
However, they will need to ensure their super account has sufficient funds to pay for the cost of the premiums, and the account continues to receive contributions.
Since all funds are different, it's best to check with your fund directly.