by Sheerie Gray | EnVision Insurance Services | Jun 20, 2019 | News
Earlier this year, the Government announced an updated position to the "Protecting Your Super Package" that was initially announced in the 2018-19 budget. It is designed to protect retirement savings from being depleted by certain ongoing payments including insurance costs. The reform ensures that members are not paying for insurance cover that they don’t know about or premiums that are inappropriately eroding their retirement savings.
From 1 July super accounts that have been inactive for 16 months will have their default life cover switched off. Note that inactive accounts can include those that have not received contributions for 16 months! You may be contributing to one super fund but could hold other relevant and required insurance in another "inactive" fund so this is an extremely important issue that we need to cover off with you!
The actual commence date for these changes is October 1 2019, however the assessment date for when an account could be deemed inactive is from 1 July 2019; hence why immediate action and advice is needed!
Anyone who has multiple accounts and/or has been out of the workforce for an extended period of time, on leave or, are self-employed and haven’t made a contribution to their super might lose their cover due to these changes.
These are not only changes that are occurring only as at 1 July 2019, there are changes ongoing where your account may become inactive after only 9 months!
Whilst these changes have been bought in for good reasons, the short time frame does not give members much time to ensure that they have taken the steps necessary to ensure they are not cancelling something they want to retain.
We strongly recommend that we meet as soon as possible to review your levels of personal insurance cover, or consolidate your superannuation where required. Please don’t hesitate to give me a call to discuss it further.
The information contained in this blog has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned in this blog, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
EnVision Insurance Services Pty Ltd Corporate Authorised Representative 1265173 of GPS Wealth Ltd AFSL 254 544 ABN 17 005 482 726