WHAT THE TAX?!!
Potential changes for insurance in super
Proposed legislation will change life and TPD insurance arrangements for certain superannuation members.
From 1 July 2019, insurances (both life and TPD) for superannuation fund members will be offered on an "opt-in" basis for the following three categories of members:
• members with balances of $6,000 or less
• members under the age of 25 years, or
• members whose accounts have not received a contribution in 13 months and are considered inactive.
If you are in any of these categories, and you want to keep your life insurance or TPD coverage, you will need to "opt-in" when either the superannuation fund or the insurance company asks you to.
If your account would be considered "inactive", you can inform your superannuation fund that you elect to maintain your current insurance policy. This will ensure that your coverage continues in the event that this parliamentary Bill becomes law.
The most practical way to do this is to get in contact with your fund to find out what their preferred method of communication is. Electronic communications will be deemed valid if completed in the correct manner.
Information sourced using CCH iknow