Under new laws passed by the Federal Government, since 1 July 2019 superannuation funds are required to cancel insurance on super accounts that are inactive. An inactive superannuation account, is an account that hasn’t received a contribution or a rollover from another superannuation fund for at least 16 months.
If you want to keep your insurance attached to your inactive superannuation account, you will either need to make a contribution to your superannuation account, or tell your super fund that you want to keep the insurance. Your super fund will contact you if your insurance on your superannuation account is about to end.
So that your superannuation fund can contact you, it is important to make sure that your super fund has your current contact details. It is also important that if you don’t want your insurance cover to end on your inactive account, that you take steps to notify your superannuation fund that you want the insurance cover to continue.
To ensure that your super and any attached insurance gets distributed the way you want in the event of your death, McNamara Law has a team of Wills and Estates experts who can assist you with your estate planning and binding death benefit nominations.