Super members need to check insurance policy
Superannuation members, especially those in hazardous jobs, need to check their current super insurance policy is the right one for their work given the proposed stapling legislation, Slater and Gordon warns.
The law firm said as workers were set to have one default super account that followed from job to job as proposed in the Your Future, Your Super legislation, new super accounts would no longer be created every time a worker changes jobs so injured workers would not have the multiple insurance policies in multiple funds to rely on when making a claim as they have had previously.
The firm’s practice group leader, Sarah Snowden, said: “Some total and permanent disability (TPD) and life insurance policies are industry or employer specific.
“A policy may exclude jobs deemed as hazardous based on working conditions, or offer benefits only to those employed in a specific industry meaning a person who moves into a different role could be ineligible to claim against their own policy after paying premiums if they are injured or ill while working in that role.
“The speed of the proposed stapling legislation roll-out is concerning and allows little time for people to consider their options.”
Snowden noted that previous legislative changes that required members under 25, if they had a low balance, or did not make regular contributions to opt in to keep insurance, leading to many members no longer holding income protection, TPD, or life insurance cover.
“People often overlook the fact they have insurance benefits they can access if they become ill or injured and can no longer work, within their super fund. It’s arguably the most cost effective and affordable insurance for people to have and it can be devastating to learn that you are no longer entitled to this insurance,” she said.
“Depending on your fund and insurance policy, you usually have about 60 days to have your insurance reinstated if you find it has been cancelled, without having to do a medical check and re-apply. The problem is that by the time people realise, it is too late.”
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