- July 25, 2019
- Posted by: Alana Hodgins
- Category: News
The insurance industry is going through a major change, with recent changes to legislation coming into effect from 1 July 2019. Trustees of superannuation funds will be required to cancel insurance cover where the superannuation account is deemed inactive. This is where the Trustee hasn’t received a contribution or rollover into the members superannuation account for a continuous period of 16 months.
The intent of this legislation is to reduce the prevalence of unnecessary insurance policies. Unfortunately, an unintended consequence is that insurance policies that are relied on are at risk of being cancelled without our knowledge or your consent. This change, while well intended, may jeopardise the important cover you have in place.
You can take steps to stop this from happening:
1. Permanently opt in to your insurance cover by contacting your superannuation fund and completing the relevant form.
2. Ensure your superannuation fund is receiving contributions or an annual rollover. If you aren’t receiving, or making, regular contributions, speak to your financial adviser.
Where either of these haven’t occurred, the superannuation fund will contact you and notify of a pending cancellation. You can then follow their instructions, or ask us for assistance. It’s important to note that in most cases, Stream Financial won’t be notified of this occurring, and it is important that you act on the communication from your superannuation fund or seek our advice.
It’s important to us that you have insurance cover that you can rely on when you need it most.
If you believe you may be affected by this change, please contact your adviser to discuss on 1300 983 942