Many Australians just lost their life cover. Did you?
If you have life insurance linked to your superannuation, think again.
Parliament’s recent Protecting Your Superannuation Package Bill involved shutting down life cover held within inactive superannuation accounts. The reform was made effective on October 1, anticipating to save billions of dollars and help Australian superannuation members in the long run*.
Could you have an inactive account without even knowing? It’s more common than you may think. If your account balance has dwindled to below $6,000, and you’ve skipped your contributions for whatever reason (e.g. you’re in-between jobs, self-employed, overseas, etc.) the Australian Taxation Office (ATO) might have marked your account as inactive.
Often, when people switch jobs, they open a new superannuation account with the new employer – however, they forget to transfer funds from the previous super account to the new one. If you haven’t accrued enough money in the account, it’s likely to be rolled into an existing active fund. This means that any life insurance policy in the inactive fund/s would have been cancelled on October 1.
It’s a common oversight. In fact, 25% of Australians don’t even realise that they have life insurance worth tens of thousands of dollars held within their super account. Also, if you’re on parental leave with less than $6,000 in your super account, you could be at risk of losing your life insurance as well, and at a critical time.
Unsure about where your life insurance policy stands? Now is the time to check on your account to find out whether you still have coverage in place. The first thing to do is reach out to your super fund either by phone or by checking your super account online and reviewing your annual super statement.
You may find you still have coverage, but the policy itself is unsuitable or inadequate. Perhaps your needs have changed recently and you’re in need or additional coverage. We sure hope there were no nasty surprises! But regardless, reviewing your cover now can help you assess whether your life insurance is still working as it should.
Life Insurance Comparison can help with this. Our advisers compare policies from nine different life insurers across the country to find you suitable quotes. We’ve created an experience that empowers Australians to purchase quality insurance products without ever having to leave their house. Receive quotes in a matter of minutes, free of charge.
Covered adequately, you won’t have to worry about your family going through any further, unnecessary hardships in what may be the most challenging time of their life. To take more of the pressure off, Life Insurance Comparison uses the latest smart AI systems to automatically review your policy annually, so you’ll never have to worry about forgetting to compare and renew.