Insurance cover to be cancelled on inactive accounts
Earlier this year, the Government’s ‘Protecting Your Super’ package was passed into law.
As a result, from 1 July 2019, all insurance cover on super accounts that are inactive for 16 months or more (no contributions or rollovers into the account) will be automatically cancelled. This is to protect accounts from being inappropriately eroded by insurance fees.
What you need to do If you would like to keep your insurance cover even if your account becomes inactive, you must do one of the following:
To make MTAA Super your fund of choice, call us on 1300 362 415.
Ongoing insurance fees
If you elect to keep your cover, you will also need to make sure your super account has enough money to continue paying your insurance fees. If you do not, you will be at risk of losing your insurance cover in the future.
Cancelling your cover
You have the option to cancel your cover at any time by calling 1300 362 415.
If your cover stops
Insurance through super can be a simple and cost-effective way to provide financial security to you and your loved ones if you die or can no longer work because of sickness or injury. If your insurance cover stops, you will lose all protection your current cover provides. You will also stop paying insurance fees from your super account.
Everyone’s insurance needs are different. If you are not sure if you should keep your insurance cover, you should get financial advice.
ASIC also provides useful information on insurance through super on its MoneySmart website.
For more information, call us on 1300 362 415.