Recently, legislation regarding insurance that is held within superannuation accounts changed to ensure that Super Funds were not charging individuals for insurance they do not need. As a result, if you have insurance via a super fund that you have not contributed to for over 16 months, the super fund must write to you and ask if you require the insurance cover to be maintained…… If you do not respond, your cover may be cancelled.
HOW DO I KEEP MY INSURANCE COVER?
- If you wish to retain your insurance inside an inactive superannuation account you will need to inform your superannuation fund or Adviser that you want to keep your cover.
- Alternatively, you may make a contribution or a rollover to your account before 1 July 2019, and your insurance cover will not be cancelled as your account will be considered ‘active’
- If you don’t want to retain your insurance on inactive super accounts, you do not need to do anything as superannuation fund will cancel the insurance cover on your account(s) after 1 July 2019. If your insurance is cancelled, your superannuation fund will send you a letter confirming this and the date from which the cancellation is effective.
WE ARE HERE TO HELP!
If you have any questions, please speak to your financial adviser on 1300 558 713 or email email@example.com or contact your superannuation fund.
You can also refer to the ASIC MoneySmart website for more information on insurance within superannuation.