Superannuation fund members need to take into account the impact of accessing the Government’s hardship early release superannuation regime on their insurance inside superannuation entitlements, according to the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume.
While seeking to scotch suggestions that running down balances to below $6,000 would automatically eliminate insurance inside superannuation, Hume acknowledged that people who emptied out their accounts would certainly be impacted.
Addressing a Financial Services Council (FSC) life insurance summit webinar session, she said that this meant that people who were considering taking early access to superannuation should take the insurance consequences into account.
Hume pointed to the information available on the Australian Securities and Investments Commission (ASIC) but said that people needed to take into account the impact on insurance coverage that withdrawing superannuation balances would have.
