The Federal Government in Australia has introduced new rules that will storm people with Life Insurance into action. The Government’s “Protecting Your Super Package comes into play on July 1 for the country. This is introduced to check super account erosion, transfer of inactive super accounts to Australian Tax Office (ATO) and closures of insurance for inactive members.
This may spell good news for some; whose insurance premiums take away a huge slice of their savings. But in general, the move has caused an uproar in the Super industry. Mail alerts and quick action notices are being released to super account holders by their respective companies to keep their accounts going.
Companies have been actively shelling out benefits to inactive members, in spite of the no show, and according to Insurance industry experts this may negatively affect them.
Circumstances surrounding an average citizen really becomes the decision maker. Some sustaining inactive accounts may be the only savings they have, some faltered due to lack of income to further fund their policies or preexisting medical conditions. Whatever be the reason, for most unassuming Australians, the time to save their insurance cover from going into oblivion is now. More than 3 million super fund members are estimated to be affected. And for most of Australia who are still in the dark, this could be a cause for concern.
The idea of including insurance within superannuation was to provide a cover for the rainy day for Australians. “Unfortunately, now an estimated 25 per cent of all insurance policies are unintended.” Said Roll-it Super CEO Mark MacLeod. Keeping their accounts is the simplest solutions and easy assistance is provided for the informed Australian. The solution is just a click away.