Important Changes to Superannuation & Insurance
New laws designed to help people consolidate their superannuation accounts could result in people losing their insurance cover, unless they contact their Super fund.
The laws, which take effect from 1 July, will mean that life and disability insurances held within your superannuation fund will lapse if your superannuation account has been inactive for 16 months (nil contributions being paid into the fund). Inactive accounts with less than $6,000 may also require a contribution to be made before 28 June 2019.
Most people with superannuation have insurance cover attached to their superannuation account. If you have joined a fund through your employment, you will usually have automatic cover put in place once the fund receives Superannuation Guarantee contributions from your employer. If you have had any health issues in the past this may be the only insurance that you are ever able to obtain and hence its very important that you take action.
The easiest way to know if you’re affected is to open and read any letters, emails or SMS messages you receive from your super fund. If you haven’t received any communication, but think you should have, reach out to your fund – they may have been trying to contact you at an old address. If you think you might be affected by the changes, or if you are unsure, it is recommended that you contact your superannuation fund and “opt in” to the new scheme.
If you have any questions please contact Joanne Douglas on 02 4227 6744.