Re loss of insurance in superannuation:
Have you lost your insurance cover due to Federal Government legislation? You may recall that on May 1, this year, we sent you an update re the Federal Government’s Protecting Your Super changes. We did so to warn that you could lose insurance cover contained within your superannuation, if you didn't confirm you wanted to keep it. This change came into effect on 1 July 2019. If you did not take action and have lost your insurance, it is potentially not too late. If you had insurance within your superannuation and it has recently been terminated, it is likely you will have received information from your fund Trustee and / or your insurer to advise you it has been cancelled. AFRM does not have direct lines of communication with every superannuation fund in Australia therefore, even though you are our client, there is a distinct possibility that we may not be aware of the current status of your insurance in superannuation. We would need to be proactively informed by you or your superannuation fund. Several insurers that AFRM works with, for a very limited time period, are providing AFRM clients with the ability to reinstate cancelled policies. However, the criteria for reinstatement varies between insurers. Therefore, it will depend upon your unique circumstances. We cannot provide a blanket guarantee that we can secure reinstatement of cancelled policies in every circumstance. That said; if you have lost insurance cover contained within your superannuation and want it reinstated, please contact us now and we will make enquiries with your superannuation fund and insurer on your behalf to see if we can get it reinstated. We are prompted to issue this communique to all clients after learning that one of our clients was devastated to recently realise they had lost cover to the potential value of more than $4m. We are currently working with the insurer on behalf of that client to have their cover reinstated. As we advised back in May 2019, you need to be careful about this regulatory change. If you have had a medical condition or injury you may never be able to get the same level of insurance cover if you seek to take out a new policy in the future. So, if you have inadvertently lost your superannuation-related insurances and want to find out if you can have it reinstated, contact AFRM and let us know. We will provide you the best advice we can to ensure your best interests are protected. Yours sincerely, Nicholas Hatherly. Managing Director
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