As you may or may not know, the federal government has recently introduced changes in legislation such that ALL Superannuation fund members who have not made a contribution into their super fund in the past 13 months will be required to OPT-IN to keep their existing insurance cover, or it will be cancelled on 1st July 2019.
This may or may not be an issue for you, but it could impact on other family members including adult children.
Some of the scenarios that could lead to someone being at risk include:
- Have an active personal super fund (including an SMSF) but retaining an old corporate/industry fund for the insurance benefits (but no contributions are being made to this)
- Having taken extended maternity leave or going on a Sabbatical
- Being a business owner who makes irregular super contributions based on the profitability and tax position of the business
- Founding a new business and not having the surplus cashflow for super contributions
- Moving overseas for work for an extended period of time with no contributions being made into your Australian super fund.
All super fund are required to send their members a letter explaining their options and how to Opt-In. This may be difficult if they have moved address or the fund does not have up to date contact details on file...
Any funds we are nominated as an adviser to will notify us if you are impacted by this – but if you have other funds they will only contact you.
It is therefore CRITICAL that you (and those closest to you) ACT on this now. Ignoring it could cost more than you think.
There is a massive level of under insurance in Australia and the only reason that many people have any insurance at all is because they have some cover inside a super fund.
For 17 years now, Knightswood House has been advising people on their insurance protection and assisting people to make claims in their time of need. Many of these people would have been caught by this new legislation and been uninsured when the cover was needed.
If this happened to you it would be a disaster for you and your family.
While you may think that if your cover is cancelled you can just take out a new policy, unfortunately it may not be so simple. If your health has changed you may only be able to obtain limited or restricted cover, or you could be forced to pay more for it.
So, what could cause this? Some reasons are:
- Carrying extra weight (BMI increased)
- Having consulted a Chiropractor / Physio for sore neck, back alignment or other examination
- Seen a Doctor or Psychologist for stress, depression, fatigue or anxiety
- High cholesterol / blood pressure
- Pain / surgery in / on any joint or bone
- Seen Doctor for anything other than a cold or flu
- Family history of hereditary disease
In our experience, nearly every client we advise on for insurance has one or more of these issues. They are currently covered by their existing insurance - but could be excluded, loaded or declined if applying for new cover in future...!
ACT NOW. We are able to help and liaise with your super fund if you are too busy or unsure what needs to be done.
If you (or anyone close to you) are not sure and want some advice around your insurance (maybe this has prompted you to revisit your cover and/or get clear on exactly what you have and what you are paying for...), just contact the office on 02 9959 0510 or hit this link and schedule a quick Insurance Audit meeting with me to get it sorted and in place.
Either way, just make sure you act before the deadline or you might 'live to regret it'!