A new law started on 1 July 2019 which requires us to cancel insurance cover on inactive super accounts (inactive means no contributions or rollovers received for over 16 months) —unless you tell us you want insurance and take steps to keep it. Find out more.
The government has recently passed another law known as Putting Members’ Interests First, which is an extension of the inactive super account change. This latest law change is also about protecting your super savings and making sure your balance isn’t reduced by the cost of insurance that you may not know about, or need. Here’s a snapshot of the change which starts on April 1, 2020:
1. If you have an existing super account that hasn’t reached a balance of $6,000 by 1 April 2020—your insurance in super will be cancelled.
2. If you’ve newly joined a super fund, you can no longer be provided with automatic insurance in your super until you reach age 25 and your super balance reaches $6,000, unless you opt-in before then.
If you’re affected by the changes, we encourage you to make your own decisions about whether to have insurance in super or not – including the type and level of cover and the cost of insurance. It’s all about deciding what’s right for you.
What if I want to keep my insurance?
We’ll let you know more about these government changes and how they impact you. This will include how you can elect to have insurance cover in your super and when you need to respond to us.
Is insurance through super right for you?
So, now’s an ideal time for you to consider your personal super and insurance needs, review your super account balance and review any insurance you have in your super account.
It’s important to make sure you have the cover type and amount that’s right for you and you don’t pay for more cover than you need. All the while having enough cover to protect you financially if things don’t go to plan. If you’re unsure about what’s best for you, please speak to a financial adviser to learn more.
What are the benefits of insurance in super?
Just like when you take out insurance to protect your home and car, it’s important to have insurance to cover your life and your income. What’s more, insurance through your super account may be a tax-effective way to cover the cost of insurance. You may also be eligible for insurance without having to take medical tests or provide evidence of good health to the insurer (depending on the product).
A change of mind
Did you know you can alter or cancel your insurance cover at any time by simply contacting us or visiting mlc.com.au/superinsurance. It’s important to know that if you do cancel your insurance, but later you’d like to re-apply, you may need to provide further medical and employment information.
Important information and disclaimer
NULIS Nominees (Australia) Limited AFSL 236465 ABN 80 008 515 633 provides this information as trustee of the MLC Super Fund ABN 70 732 426 024. This information may constitute general advice. It has been prepared without taking account of individual objectives, financial situation or needs. Before acting on any information, you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives. We recommend you obtain financial and tax advice tailored to your own circumstances prior to making any investment or acquisition decision. Any general tax information is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. This information is current as at 9 October 2019 and may be subject to change, for example should there be a change of legislation or economic conditions. An investment with NULIS is not a deposit with or liability of, and is not guaranteed by, NAB or other members of the NAB Group, and is subject to investment risk including possible delays in repayment and loss of income and capital invested. Past performance is not a reliable indicator of future performance.