Insurance Planning
Personal insurance
This year’s Federal Budget included a proposal that will alter the rules for personal insurances.
The change that may alter the information contained in this module includes:
1. From 1 July 2019, automatic default life insurance will be removed for new superannuation fund members who are under 25. If individuals want to have life insurance cover within their superannuation fund then they will have to opt-in. The opt-in proposal will also include those superannuation fund members who have superannuation balances under $6,000 or have not received a contribution in 13 months (that is, inactive accounts). The proposal has not yet been legislated.
This change is still only a proposal at the time of writing (1 July 2018) and legislation needs to be passed to make it effective. Importantly, changes could be made or the proposal may be rejected.
