A nasty side effect of the legislation is that you could lose the insurance that you have in Superannuation. Having insurance can provide financial protection for your family’s personal needs. The financial consequences of having no cover can be devastating.
To prevent losing your insurance cover, you will need to pay attention to notices that your Superannuation Fund will send. All funds will need to identify those member accounts for which no contribution or rollover was added in the six months prior to 1 April 2019. If you receive one of these notices, you will need to respond and elect to keep your cover to prevent it from being cancelled.
Alternatively, you can contact your Fund and inform them that you elect to maintain your insurance cover.
Other changes in the legislation include:
- Super accounts with balances under $6000 that are inactive for 16 months will be closed and the funds send to the Australian Taxation Office (ATO)
- There will be a cap of 3% on fees for accounts with balances less than $6000 and
- Exit fees cannot be charged for any super member
If you are unsure of what do to or if your current personal insurance is appropriate for your needs, please contact David van den Berg at Adrians Private Wealth.