Why do I have to fill out a super rollover form?

The way Skye sets up your insurance allows you to pay some premiums from your super, but doesn't require you to change your super fund.

When you set up a retail insurance policy so it's premiums can be paid from your super fund, you are technically becoming a member of the insurance company's super fund.

To pay the premium from your normal super fund, you need to authorise a partial rollover of money from your super fund to the insurers fund. The amount rolled over is the exact amount of the insurance premium, and your original super fund remains open, holding all the rest of your super money, to accept super contributions from your employer as normal.

Your account with the insurer's super fund never has an accumulated balance because the only money that is ever paid into it is the exact amount of the insurance premium. There is no investment component to this fund, nor are there any fees payable by you. Each year, you'll get a super statement from the insurance company that will show you this.

So think of the rollover form as a payment form - it simply authorises the payment of your insurance premium from your super fund.

A 15% premium rebate applies when a premium is paid by rollover so the amount transferred from your usual super fund will be 15% less than the actual insurance premium.