Have you received a letter from your superannuation fund?

Yes: Then you MUST read this

Important Super Changes – Insurance

Under the Protecting Your Superannuation Package, which was announced in the 2018 Federal Budget and which was designed to protect Australians’ superannuation savings from undue erosion by fees and insurance premiums, superannuation fund trustees are able to cancel your life insurance from 1 July 2019 in certain circumstances.

In a nutshell, the bill contained measures to;

  • prevent trustees of superannuation funds from charging certain fees and costs exceeding 3 per cent of the balance of a MySuper or choice product annually where the balance of the account is below $6,000;
  • prevent trustees from providing opt out insurance to new members aged under 25 years, members with balances below $6,000 and members with inactive MySuper or choice accounts, unless a member has directed otherwise;
  • require the transfer of all superannuation savings with the balance below $6,000 to the Commissioner of Taxation if an account related to a MySuper or choice product has been inactive for a continuous period of 13 months; and
  • enable the commissioner to consolidate amounts that have been paid as unclaimed money, inactive low-balance accounts and lost member accounts into an active superannuation account where the reunited balance would be greater than $6,000

Your superfund may send you an opt-in letter. We strongly recommend you read this opt-in letter and complete it and return it to your superannuation fund trustee in order to retain your level of life cover within the fund (which may include life, TPI and income protection insurance).

Failure to make this election may result in your existing insurance being cancelled and could prevent you from re-applying for the same or similar cover depending on your circumstances.

We also recommend you retain a copy of this opt-in notification and send a copy to The Business Experts so we can retain on your file in the unlikely event that the superannuation fund makes a mistake and inadvertently cancels your cover.

Please do not hesitate to contact us if you are in any doubt.

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