FOR IMMEDIATE RELEASE
The Federal Government has recently passed the Treasury Laws Amendment (Protecting Superannuation Package) Act 2019, with the aim of protecting individual superannuation members from having their balances diminished by insurance premiums in inactive super accounts.
From 1 July insurance held in an inactive superannuation fund will be cancelled, unless the owner notifies the fund that they wish to retain their insurance cover. An ‘inactive’ superannuation account is one that has not received a contribution or rollover for 16 months. While this measure will be of benefit to many, it poses a risk to those who wish to retain their cover which, once lost, it may not be able to be recovered.
“This is of particular concern for people who, due to pre-existing health conditions, may not be able to find cover elsewhere if the insurance within their superannuation is cancelled,” says Daniel Ellis, associate at Carrick Aland Wealth Planning, “so it is important that people know whether they have inactive superannuation accounts with insurance, and let the fund know as soon as possible if they wish to retain their cover.”
Many superannuation funds have begun sending correspondence to affected individuals, but if you have not been contacted and think you may be at risk you should not delay taking action. “There are many ways you can ensure you keep your insurance cover. Some super funds are sending ‘opt-in’ forms out to clients, but you can also make a contribution to your super, or simply phone and notify them of your decision. If you elect to keep your insurance it will remain in place indefinitely,” says Daniel.
To discuss your insurance or superannuation needs contact Carrick Aland Wealth Planning at carrickaland.com.au, or drop into one of the offices in Dalby, Toowoomba or Chinchilla.
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Daniel Ellis, Associate
Carrick Aland Wealth Planning
Phone 07 4669 9800