Hume acknowledges early release impact on insurance
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.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
