June 3, 2019
AIA Australia has joined forces with two of its superannuation partners to launch a national public awareness campaign intended to alert Australians to their potential loss of life insurance cover brought about by impending changes to superannuation laws.
Sending a similar message to consumers as the AFA has with its adviser members (see: Advisers Cautioned on Potential Insurance Cancellations…), the campaign addresses the Government’s ‘Protecting Your Superannuation’ laws which, from 1 July 2019, will remove automatic life insurance cover from members with an account that has been inactive for 16 months or more.
The insurer notes while the new laws represent good progress to address the issue of inappropriate balance erosion in superannuation, “…the changes could leave Australians who want or require life insurance uninsured at their time of greatest need…”
Together with its partners Commonwealth Superannuation Corporation and Mercer, AIA Australia’s awareness campaign will inform individuals of the steps they can take to review their personal circumstances and decide whether or not to opt-in to maintain life cover.
The campaign encourages members to ‘Click, Check and Protect’, and includes an information hub at www.checkmycover.com.au. The website is intended to provide Australians with the necessary tools and information they need to better understand their cover, and to determine their needs.
This activity will be supported by a national advertising campaign commencing this week, including billboards in major cities, radio and online ads.
…it’s simply not the case that all members with an inactive account are without insurance needs
AIA Australia CEO Damien Mu said his firm supports the intent of the legislation, “…but it’s simply not the case that all members with an inactive account are without insurance needs, where he says estimates suggest more than $500milliom is paid in claims to inactive members each year:
“Our concern is that a large majority of impacted members won’t be aware of these changes until it’s too late,” said Mu, who added, “We want all Australians to be informed of the changes and able to make the right decision based on their own individual circumstances. By creating further awareness and empowering members to make their own decision, we help to ensure that insurance is only removed for those individuals when it’s not wanted or required.”