Super fund insurance cancellation

The Australian Government has recently introduced new laws called Protecting Your Superannuation package that may affect the insurance arrangements you have through your superannuation product.

From 1 May 2019 superannuation funds have commenced writing to clients with inactive accounts to inform them that their insurance may be cancelled.

As a result of this legislation, from 1 July 2019 superannuation funds will be required to cancel their client’s insurance cover in superannuation accounts that haven’t received a contribution for a period of 16 months.

If this applies to you, to keep your existing insurance cover and its benefits you need to complete and return the Retain Insurance Cover form provided by your superannuation fund, or make a contribution or rollover into your account.

Further, low balances (below $6,000) and inactive accounts as at 30 June 2019 will be auto consolidated to the ATO by 31 October 2019.