If you’re experiencing hardship and have made a COVID-19 early release of super withdrawal, you may be able to put both your insurance cover and the premiums you pay for it on hold.
Eligible members can place their premiums and cover on pause for three months. It’s important to understand that while this means you won’t have to pay for your insurance, it also means you won’t have insurance cover during this time, so if you fall ill or become injured while your premium is on pause, you won’t be able to make a claim.
If you’re still experiencing hardship after this time, you can choose to extend the pause for a further three months at a time, up to a maximum of 12 months in total.
It’s important you understand that once you apply for a premium pause, you can’t reinstate your cover until the term of the pause is over. For example, if you pause your premiums from September to December, you can’t ‘un-pause’ the premium in October.
Who can apply
You’re eligible to temporarily place your insurance premiums and cover on hold if you have:
- an eligible super account* (view the list below)
- made a COVID-19 early release of super withdrawal from the super account holding your insurance
- some money left in your super account but not enough to cover 12 months’ worth of insurance premiums at the point you contact us.
You can log into My AMP at any time to check your account balance and insurance premiums.
*List of the eligible super accounts this premium pause applies to
You can check your annual statement to understand what type of super you hold and who you’re insured by.
- AMP Flexible Super
- Employee Flexible Protection
- Employee Essential Protection
- AMP Flexible Super – Rollover Protection (previously Super Directions for Business Rollover)
- AMP Flexible Super – Personal
- Custom Super – Business Protection (previously Super Directions for Business)
- CustomSuper – Simple Protection and Tailored Protection (previously Simple Super and Tailored Super)
- Flexible Lifetime Super
- Flexible Lifetime Super – Employer
- SignatureSuper (AMPL, ex-NMLA insured)
- SignatureSuper - Personal (AMPL, ex-NMLA insured)
How to apply
Ian puts his insurance on hold
Ian is 28 and works in sales. Unfortunately, his employer closed as a result of COVID-19 and Ian lost his job. With bills to pay and limited options for the time being, Ian withdrew $10,000 from his super under the COVID-19 early release of super scheme in June. His remaining super balance was $300.
Ian had insurance included in his super plan, meaning $60 was withdrawn from his account each month to pay his premium. The next month, Ian got in touch with his super provider AMP because he only had five more months of insurance payments remaining in his account. He knew that after this, unless regular contributions were made in this super account, the insurance inside this super account could be cancelled once it has no balance left, and ultimately the account could be closed.
How AMP supported Ian
Ian discussed his options with AMP and, because he had less than 12 months’ worth of premiums in his super account, he decided to put his insurance cover and premiums on hold for three months. Ian hoped by then he would then be back at work and his super contributions would return to normal, meaning he’d once again be able to cover the costs of his insurance.
Ian’s aware he won’t be covered for an injury or illness, or if he passes away during the time his insurance is on hold but feels relieved that he won’t lose his insurance or his super account while he looks for a new job. And having his insurance on hold rather than cancelled means he won’t have to answer any health and lifestyle questions or complete new applications to get his insurance back. During the pause, Ian’s policy anniversary came around, and his insurance cover and premiums changed. So once his policy was restored, these changes came into effect, and Ian was aware that the same exclusions on his policy still applied.
What this means for claims
Ian can still make an insurance claim for an injury or illness arising before he paused his cover, or once his cover resumes, but he can’t make a claim for an event that happens during the time his cover and premiums are on hold.
Frequently asked questions
What is the benefit of pausing my insurance premiums and cover?
If you don’t have enough money in your super account to continue paying your insurance premiums your cover will eventually be cancelled. It can then be hard to get the same insurance at the same price down the track, and you may also have to answer questions about your health and lifestyle. Pausing your premiums and cover instead, while you’re experiencing hardship, means your insurance and what you pay for will resume once the period you’ve paused it for is over. Premium and cover pauses will be available to members who have less than 12 months worth of premiums in their account.
Before making a decision you may want to seek financial advice, because if you choose to pause your premiums and cover you won’t be able to make a claim if you fall ill or become injured during this time.
Am I covered during the time I have my premiums and cover paused if I need to make a claim?
No – you won’t be covered during the pause period. This means you won’t be able to make a claim for a death, injury or illness that occurred during the time you’ve placed your premiums and cover on pause. You may want to seek financial advice before choosing this option.
What If I change my mind during the pause period – can I pay my premium and get my cover back?
No – once you choose to pause your insurance premiums and cover, they’ll remain on hold for three months. Your cover and premiums will automatically start again at the end of pause period.
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