Act now or risk losing your life insurance: Contact your super fund by June 30
Starting from July 1 there are major changes to superannuation that could impact workers on extended maternity leave or sick leave. Act now to avoid losing your life insurance.
If you have a superannuation account with a balance of less than $6,000 or you haven’t had any contributions for 16 months (since February 2018) – you will be affected.
- Default life insurance and total permanent disability (TPD) cover with your superannuation fund will be cancelled if your super account hasn’t received a contribution or rollover within the last 16 months.
- Accounts with a balance of less than $6,000 or without any contributions for 16 months will be transferred to the Australian Taxation Office (ATO).
What can you do?
- Contact your superannuation fund by June 30 to “opt in” to the policy or reactivate your account.
- Advise your superannuation fund that you wish to continue to receive any life insurance benefits and total and permanent disability (TPD) cover that is part of your super.
- Advise your superannuation fund that you do not want your account to be transferred to the ATO.
While these changes were designed to stop super balances being eaten up by insurance fees, they could leave vulnerable people without vital insurance you’ve spent decades paying for. These changes are likely to impact people on extended sick or maternity leave and young workers who haven’t had a super contribution in 16 months, unless you get in touch with your super fund.
Don’t wait, call now. It will take less than 5 minutes to make sure your insurance is safe.
Contact your super fund now.