- The Protecting Your Super changes were introduced to make sure super account balances were not being excessively eroded by insurance premiums.
- You can still be covered by insurance held in your super account – but if you stop making contributions for an extended period and want to keep your cover, you’ll need to let your fund know.
- Your account is inactive when you (or your employer) aren’t making any contributions.
- If your account has not received any contributions for 16 continuous months, your insurance will be cancelled unless you opt in. Your super fund will try to contact you before this happens, so you’ll have a chance to make a choice about whether to keep your cover or not.
- It can provide financial security for you and/or your family should something untoward happen to you.
- It can provide more cost-effective cover than policies held outside of super.
- It can provide automatic acceptance, with no health checking or declarations in the case of standard cover.
- Often, the insurance offered through your superannuation fund is tailored to your particular set of occupational needs.
- Most people impacted will be contacted by their super fund in the lead up to a 16 month rolling deadline. If you’ve been contacted by your super fund/s, follow the instructions in the letter or email you received. If you don’t want your insurance to lapse, you should take action before the deadline approaches.
- If you have an account you’re not contributing to and haven’t heard from your fund, get in touch to find out if you are impacted and make sure your contact details are up to date.
- If you don’t have inactive accounts, the changes won’t impact you now – but it’s still a good idea to check your insurance settings.
- Talk to your super fund about whether it is possible to reinstate your previous insurance policy. There might be new conditions attached to reinstating your policy, such as requirements to provide medical history.
- You might not be impacted – only those with inactive accounts will receive a letter, and in some specific circumstances your account might be exempt.
- If you didn’t receive a letter but think you might have an inactive account, check with your fund that they have your current contact details.
- There are no additional costs in electing to keep your cover, however premiums will continue to be deducted from your account.
- Talk to your fund if you want to know more about the cost of your insurance.
- If you did not opt-in to your insurance in super before the deadline there may be additional costs involved in selecting a new insurance policy. However, you need to be aware that a new policy may not have the same premiums or policy features.
- If you have an inactive account and do nothing, your insurance policy will be cancelled.
- If you want to reinstate your insurance, you’ll need to contact your super fund.
The Protecting Your Super package has an ongoing impact on your insurance in superannuation, so you may be affected after July 1.
If at any point you haven’t had a contribution to your superannuation account for 16 months, then your insurance will be cancelled.
- Check your last annual statement or contact your fund to ask them.