Insurance in superannuation

Last chance to keep insurance in super for people with inactive accounts

This is the last week for people with inactive super fund accounts to tell their funds that they wish to continue their insurance cover, several finance groups have warned. Financial Counselling Australia, the Consumer Action Law Center, and the Australian Institute of Superannuation Trustees, have warned that on 1 July… Read More »Last chance to keep insurance in super for people with inactive accounts

Over 96% of not-for-profit super fund members covered by insurance code

Over 96% of members of not-for-profit super fund members are covered by the Insurance in Super Code of Practice, according to the Australian Institute of Superannuation Trustees (AIST).

AIST CEO Eva Scheerlinck said the overwhelming support for the Code by the profit-to-member sector, AIST’s preferred term for not-for-profit funds, would lead to improvements for millions of super fund members – such as faster and better claims handling.

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Lack of action on insurance eroding super is “completely unacceptable”

A Parliamentary committee has called the lack of action by super funds on erosion of super balances through duplicate insurance “completely unacceptable” and recommends the regulators immediately audit super fund trustees for payments around default insurance and expand reporting to consumers. The Parliamentary Joint Committee on Corporations and Financial Services… Read More »Lack of action on insurance eroding super is “completely unacceptable”

Some super funds treating members as smokers by default for insurance

ASIC is concerned by the some of the poor disclosure around insurance in superannuation, including the practice by some funds of deeming members to be smokers by default for insurance purposes. The regulator said there were “some areas for improvement, including in relation to the provision of insurance through superannuation funds… Read More »Some super funds treating members as smokers by default for insurance

Insurance in multiple super accounts can lead to “rapid erosion” of balances

Too much insurance across multiple superannuation accounts can result in “rapid erosion” of super balances, says the Insurance in Superannuation Working Group (ISWG) which is working on ways to address the issue. ISWG Chairman Jim Minto said too many people have multiple superannuation accounts, and though insurance benefits are valuable, too… Read More »Insurance in multiple super accounts can lead to “rapid erosion” of balances