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20 May 2019
Superannuation fund members must act promptly to retain their group life insurance, law firm Slater & Gordon says.
Under recent reforms, funds will be required to cancel cover in accounts that have been inactive for 16 months unless the member opts in or makes a super contribution.
The reforms take effect from July 1. Funds will soon begin contacting members, asking them if they want to retain their coverage.
“We are advising clients to be aware of the upcoming changes and to ensure they understand the super insurance policies in each of their accounts might offer different benefits, so it’s best to check what qualifications and criteria they’ll need to meet to access the insurance,” Principal Lawyer Annemarie Gambera said.
The Government was forced to negotiate with the Greens to pass the reforms, extending the period of inactivity from 13 months and keeping cover under opt-in arrangements for low-balance and under-25-year-olds’ accounts rather than removing it.