If the above change to legislation affects you, you may have received a letter, in the mail or by email, from your current insurance provider, or you may receive a letter from an inactive super fund provider. ( i.e. an older super account that was initially kept open because you wanted to keep the life insurance that was linked to it, or, it could be a super account that you have forgotten about and it has life insurance cover linked to it)
This letter will inform you that if your super fund is inactive i.e. it has not received any form of a contribution to the account in the last16 months, that any life insurances that are attached may be canceled.
This applies to insurances that are directly funded through your super, either as part of a Group Life insurance cover (i.e. Industry fund or large employer super fund that has direct life insurance) or, if the super fund is funding an external insurance provider i.e. your super fund may be MLC Wrap or Fundamentals, but your insurance is with AIA.
This change will mean that your super fund will not be able to pay future life insurance premiums when they are due whether it’s an internal debt request or a direct debit (via a super rollover) request occurs.
If you wish to retain your current life insurance, the simplest way to avert any issues is as soon as you receive such a letter an “opt-in” form will be included, please act on this immediately.
I strongly recommend that you complete this form, sign and submit back (note there may not be any information to complete as the information may have been pre-populated on your behalf.
Therefore, all you will need to do is sign and email back to the sender before the 1/7/2019. Otherwise, your life insurance covers will be canceled from the 1/7/2019 and you will be out of cover.
If you are uncertain about this, please do not hesitate to call or email me.
John Blangiardo CFP Dip FP
Authorised Representative Apogee Financial Planning