You may be at risk of losing your life insurance through superannuation on the 1st of July. This February, new legislation passed that will cancel any default life insurance put in place by your super fund on 1 July if your account is deemed inactive.
Why would your account be considered inactive? If there have been no contributions or roll-overs in or out of your account in the past 16 months or more your super life insurance coverage will be cancelled. You may be thinking this would only apply to those who are retired and thereby not contributing to their super fund, but that isn’t the case.
Many Australians either mistakenly or intentionally have multiple super funds. If you mistakenly have multiple accounts, it could be from moving jobs, or having taken on contract work, for which the company set up a super fund for you. Those who intentionally have more than one super fund, like many of our clients at United Global Capital, opened additional super accounts to retain the default insurance cover set up with their original super fund, before opening a self-managed super fund to hold up the majority of the balance, and make solid investments. In either case, you want to make sure your default insurance cover from your original super fund is not cancelled by responding to your notices from your super fund before the 1st of July and potentially making a contribution to that fund.
Listen in now for more on this legislation and insights on the level of protection you should have on your life insurance policy.
This Week’s Investor Exchange Round Table Covered:
- Brett discusses two announcements from APRA surrounding directions and additional license conditions to AMP Superannuation, and capital guidelines for large and small banks in regards to what they consider risky loans. (19:19)
- What is the fifth largest source of lending in Australia behind the Big Four? Interestingly, loans between family members is the next most common lending source in Australia. Listen in for more on some of the issues and risks created through lending funds between family members. (22:11)
- Joel discusses the ‘winners strategy’ and scaling into position, in alignment with commentary made by hedge fund manager Paul Tudor Jones. Listen in for the insights we give our clients on buying into stocks that are going up and buying into strengths, instead of seeking out bottoms. (33:55)
You Cannot Be Serious:
Thomas Cook, of Thomas Cook Airlines, faced an unfortunate gaffe when his sleek new “I heart Cook’s club” emblazoned aircraft, reads “I heart Cock’s club”, due to the letter positioning when the middle door opens!
US President Donald Trump has caused another splash on Twitter, in typical unedited Trump style, tweeting his recent meeting with the “Prince of Whales”. It’s no surprise that Twitter mockery of the embarrassing mistake went viral!
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The post Episode 49: Protecting your superannuation life insurance from upcoming changes appeared first on The Investor Exchange.