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.”
This piece of evil legislation snuck under the radar. I feel like me and my valued clients are under attack, because I gave them good advice about paying for very valuable insurance cover that they so need and find difficult to afford otherwise, and a government has enacted legislation to tear that apart. They threw us in with the dirty bath water of industry super funds shameful pathetic insurance offering( which the no win no fee boys must be spitting chips about). They even have some of my clients being off side as they have been classed as inactive super fund members, when the last annual lump sum contribution sent in was 8 months ago. Hay Rob my super is definitely not inactive.
This legislation is worse than you think. I know of at least one company who has had to write to hundreds of thousands (yes, that’s right) of advised and underwritten customers simply because they draw down premiums from a super account and the insurance policy is not separate from that account.
Yep – there are a LOT of customers who don’t contribute to a super account but have had advice and been underwritten to have insurance. That could all disappear 1 July if they do not opt in. And any research will tell you opt in rates are always low.
Comments are closed.