Insurance in super – are you properly protected?
In the 2018 Federal Budget, the Government announced they intend to pass legislation that will make insurance in super ‘opt-in’ rather than ‘opt-out’ for some people.
This means you will need to ‘opt-in’ for insurance cover if you:
- have an account balance less than $6,000
- are under 25 years of age
- have an inactive account that has not received a contribution in 13 months.
The legislation has not yet been passed in Parliament but if it is the changes will likely start from 1 July 2019. If you are affected by this change we will contact you so you have the opportunity to opt in to continue to receive your insurance cover.
Are you protected?
To find out how much insurance cover you have, check a recent benefit statement or you can also check your insurance by logging into www.ioofonline.com.au
Use the ‘insurance needs calculator’ on the insurance tab of www.ioofonline.com.au to help you decide if you have sufficient insurance and whether you should ‘opt-in’ to the cover if the changes take place.
The type and level of cover you need depends on your personal circumstances. Considerations that may affect your decision include:
- your age
- how much debt you have
- your income
- how many dependant children you have.
It will also differ depending on your specific circumstances, such as your health or pastimes.
If you have children and a partner who would suffer financially if you died or were permanently incapacitated then you should consider insurance, so if the worst happens, you will have peace of mind that your family will be financially protected.
If you believe you need to increase or decrease your insurance cover you can simply complete the ‘Change of insurance form for IOOF Employer Super’. However, before making any changes to your cover we recommend you seek advice from a financial adviser. They can take you through the different types of cover and the level you need depending on your circumstances to give you peace of mind. If you don’t have an adviser, we can put you in touch with one.
Contact our IOOF Education and Advice Team on 1800 119 062.