Hume acknowledges early release impact on insurance

27 July 2020

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.




Forget insurance inside superannuation. You can get insurance from e.g. Real insurance and it will be paid on ur death to whoever is nominated and no one else unlike the trusty Trustee who decides who will receive it with Super Death Benefits. And... it is tax free even if the beneficiary is not a dependent, unlike Super. REST gave 50% or $213,000 of my deceased sons super and death benefit to a 21 year old girl who lived at his house less than 2 yrs off and on, no marriage, no engagement, no reg relationship, no children biological or step, no shared bank accounts, no money going between bank accounts. REST pay nothing towards funeral costs so we paid his funeral, bought his grave. We paid out $109,000 towards his Estate while the Trustee of REST took 12 months to come to a decision. Now his Estate tax has been done and we have to pay approx $50,000 in tax on the $213,000 we received as non dependent beneficiaries. So we effectively received $50,000. People need to read S.I.S. legislation and the Trust Deed of the Fund they belong to. It will blow ur mind. Get rid of Super, all of it. There is nothing good about super, just so much spin on it by those who benefit, the funds managers and their mates.

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