Will you lose your cover under new insurance laws?
21 January 2020
New Government legislation has introduced more changes to the insurance cover provided within superannuation.
Under the Putting Members’ Interests First legislation, from 1 April 2020 BUSSQ will no longer be able to provide insurance cover for:
- Members with an account balance that has not totalled $6,000 or more since 1 November 2019
- New members aged under 25 who join from 1 April 2020, unless the member elects to have insurance cover.
The legislation aims to ensure that members are not paying for insurance in super that they don’t know about, or premiums that unnecessarily erode their super savings.
If you’re affected, we will be in contact to provide you with information about your options, which are:
- to maintain your insurance cover;
- or to do nothing, which means your cover will cease on 1 April 2020 and premiums will no longer be deducted from your account from this date; or
- to cancel your cover before 1 April 2020.
As a BUSSQ member, if you want to maintain your insurance cover or cancel your insurance cover you can make this choice now. Find out more.
These important changes in Government legislation will impact many people and can be a prompt to review your insurance to ensure it meets your current needs and circumstances.
Insurance cover within super provides many benefits including:
- Confidence and peace of mind knowing that you have protection in place.
- No out of pocket costs with insurance premiums deducted from your super account balance.
- Bargaining power – funds negotiate competitive fees for members so you’re paying less than if you purchased insurance yourself.
- Tax benefits of paying for your insurance before paying tax – which you don’t have when purchasing insurance outside super.
Look out for any communication from BUSSQ so you can make the right choice about your insurance cover.
For more information on these changes contact us on 1800 692 877 or make a choice about your insurance now.