Changes to superannuation insurance
From 1 July 2019, the Australian Government made changes to superannuation laws to reduce the number of duplicate and/or inactive accounts and stop super balances from being eroded by unnecessary fees.
This means superannuation accounts classified as ‘inactive’ will have had their insurance cancelled. An account is classified as ‘inactive’ if, over a maximum of a 16-month period , either no contributions have been received or the member has not otherwise engaged with the account by, for example, requesting a change to their investment strategy or insurance coverage. Ensure you check in with your insurance company as the 16-month period is the maximum time allowed for inactive accounts and companies may choose to classify your account as ‘inactive’ sooner.
If your insurance cover has been cancelled this may have an impact on your ability to lodge a ‘Total and Permanent Disability’ or income protection claim now or in the future.
If you think your account may be classified as inactive, you may have received correspondence from your superannuation provider notifying you of the change.
If you wish to continue your insurance cover, you will need to contact your superannuation provider to discuss your options to maintain the cover.