Insurance and the Protecting Your Super reforms

Sky with beautiful colours

This video looks at the new Protecting Your Super laws that come into effect on 1 July 2019. You can watch the video here or read the transcription below.

Hi Everyone, it’s Greg Major here from Blueprint Wealth.

I’m here to talk to you today about some new government regulation called Protecting Your Super. The government’s recently introduced this legislation to ensure that people who have insurance which is funded by their superannuation that don’t know about it, can ensure that the value of the super accounts is not detrimentally eroded over time. Superannuation funds that see that the superannuation holders that have inactive accounts. In other words, they haven’t received a rollover or they haven’t received contributions for at least sixteen months are now required by law to terminate any insurance contracts attached to those superannuation funds.

Are you impacted the the new reforms?

So, who’s going to be affected by these new laws. The superannuation funds are required to contact everyone who might be affected by this new regulation. Keep an eye out – you may have already received an email or a letter. And if you haven’t you will be getting one very soon.

All the superannuation funds are required by law to contact people who are affected and now is the time to act. These new laws come into effect by 1st July and you have between now and then to make a decision on what to do.

Is your insurance cover right for you?

So, it’s really important to figure our whether that insurance suits your needs and whether you should keep it because if you don’t do anything that insurance will be cancelled. Now that might suit you but it might not. In a lot of cases, getting insurance is difficult. But then again, if you don’t need it you don’t want to be paying insurance premiums for it, because it will reduce your superannuation balance over time.

If in doubt seek advice, give us a call. It’s really important to make a decision before the 30th of June because if you don’t act and inform your superannuation provider about what you want to do and opt in to keep it they’ll be obliged to cancel your insurance.

Questions?

As I say, if in doubt give us a call (08 9423 0300) and we can help you out. Ok, best of luck with that and I hope you found this information informative.


Greg Major is an authorised representative and credit representative of AMP Financial Planning. Blueprint Planning Pty Ltd (ABN 78 097 264 554), trading as Blueprint Wealth, is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee 232 706.

 This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

 If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

Photo by Ferdinand Stöhr on Unsplash