This year the government introduced new laws to protect your super by making sure your balance isn’t eroded by fees and costs for services and products you might not need, like insurance.
These new laws mean your insurance cover may be cancelled if your super account:
- has a balance less than $6,000
- is inactive – inactive means, no contributions or rollovers for at least 16 months.
Protecting Your Super
This legislation was introduced on 1 July 2019 and stops insurance cover being provided to you if your super account is inactive – unless you request to keep your insurance cover. Rest assured though, we will make every attempt to contact you before cancelling any cover.
Putting Members’ Interests First
This new law means if your super account balance hasn’t reached $6,000 between 1 November 2019 and 1 April 2020, your insurance will be cancelled, unless you opt in to retain your cover. This is a one-off measure to cancel insurance cover on low-balance accounts. If your balance reaches $6,000 or you opt-in to keep your insurance in writing by 1 April 2020, it won’t be cancelled.
After 1 April, new members under 25 or with less than $6,000 in their account will no longer be offered default life and income protection insurance. You can read more about PMIF here.
With the new legislation coming in, it’s a good time to think if you have the right amount and type of cover to meet your needs now and in the future.
It’s also about making sure that you’re not paying for something that you might not need. If you have multiple super accounts, you should consider if paying duplicate insurance premiums could impact your super savings.
You can find out more about your insurance options through Club Plus Super here.
Need more information?
For general information visit the government’s MoneySmart site.