Cancellation of Superannuation TPD Insurance on Inactive AccountsPublished on Posted on
Please note that this post was written for Victorian audiences and the information within may not apply to other regions.
However, under new legislation passed by the Federal Parliament, inactive superannuation fund accounts may lose insurance cover. A super account is ‘inactive’ where no contributions or rollovers have been received for 16 months.
As of 1 July 2019, inactive superannuation accounts, regardless of account balance, will have any insurance cancelled. This includes TPD and Income Protection cover.
If you do not notify your superannuation fund that you want to maintain your insurance cover, it will be cancelled on 1 July 2019. Please note that if you were injured and ceased work before 1 July 2019 your entitlement to make an insurance claim may not be affected.
At Zaparas Lawyers, our dedicated superannuation and insurance team can review your TPD insurance entitlements and determine if you have a claim.
We encourage all superannuation members to carefully check their policy to ensure they remain covered.
If you require any assistance or would like further information, please do not hesitate to contact your local Zaparas office.
*This piece was written by Matt Andrews, Lawyer in the Zaparas Lawyers Superannuation team.