Changes to insurance in superannuation
The Government has proposed that some changes be made to mandatory insurance in super. If these changes become legislated, many Intrust Super members could lose their insurance on 1 July 2019.
The changes will affect super fund members who have a balance of less than $6,000 (on or after 1 April 2019), or have not contributed to their account for the last 13 months. These members could lose any default insurance cover currently attached to their super account.
Those who fall into both these categories may also have their super account transferred to the ATO.
Eligible Intrust Super Core and Executive Super members, many of whom may not take out insurance externally due to financial or eligibility reasons, currently receive automatic cover as soon as they join the Fund. The premiums for this cover are taken from their superannuation account, not their family budget.
Intrust Super members can be covered (if eligible) by the Fund’s award-winning1 insurance offering, including cover for:
- up to 90% of their income with income protection insurance
- $300,000 with life and TPD insurance (more cover can be applied for)2.
Without this cover, many Intrust Super members could have no form of personal insurance and may struggle to protect themselves with adequate cover in the future.
Historically, default insurance has been a simple way for working Australians to protect themselves from the financial impact of illness or injury.
In 2013, the Government made it mandatory for any MySuper fund that was offered as a default fund by an employer to provide automatic default insurance to members.
This new legislation, initially proposed in the 2018 Federal Budget, is due to be considered by the Senate when Parliament resumes in February 2019.
Intrust Super will be contacting all members who could be at risk of losing their insurance cover. Anyone who doesn’t want to lose their insurance cover can simply let us know. Just email email@example.com.
If you need any further information or would like some direct assistance, Intrust Super is at your service. You can get in touch with your local Relationship Manager – their contact details are listed here.
You can also talk to an Intrust360° financial adviser about the level of insurance cover you might need to protect yourself and your family. Just call 1300 001 360 to book an appointment.
1Awarded Money magazine’s ‘Best Value Insurance in Super’ award from 2013-2018.
2This cover applies to Intrust Super Core Super|MySuper members aged under 40.