Protecting Your Super package: What you need to know

The Protecting Your Super Package of reforms commenced on 1 July 2019. These reforms are designed to protect your super accounts from being eroded by insurance policy fees and premiums that you may not require, as well as help to consolidate your low balance super accounts.

This article outlines each of the key reforms and how they may impact you.

Insurance within inactive super accounts

Under the Protecting Your Super legislation, your super fund will be required to cancel the insurance cover that goes with your super account if it is deemed to be inactive (in other words, if you haven’t contributed a payment to your super account for more than 13 months).

However, your super fund is required to inform you if you’re at risk of having your insurance cover cancelled and to give you the option to retain it even if you’re not making regular super contributions. Super funds have been progressively contacting inactive members ever since the legislation was announced.

Should you cancel insurance coverage you have in super?