Despite being a rather big change in insurance inside super, the word hasn’t really got around. Do you know if you have cover and are you aware of the changes that took affect 1 July 2019?
If you are a member of a retail or industry super fund (perhaps even multiple funds) you may be impacted by the changes that will come into effect from 1 July 2019.
Firstly, if your account remains ‘inactive’ for 16 months or more, the super fund will switch off any insurance you have within that super fund. ‘Inactive’ means your account has not received any contributions in that time. This may be of a concern if it is the only insurance you have. There are many reasons you may no longer be making contributions. Perhaps you are currently not working (mums and dads!) or you contribute to another super fund from your employer or business. Be sure to consider where your insurances are and check if you may be affected.
Secondly, for those under 25 you will no longer automatically receive cover from your fund. You will need to ‘opt in’ in order to be covered by an insurer. This may not be an issue but it is definitely something you should keep in mind.
Please be sure to read the below information and contact your insurance broker or advisor to ensure you have appropriate insurance in place. If you have any questions you can contact us here.