Changes to superannuation which will see those under-25 or those with account balances under $6,000 having to opt-in to life insurance have been welcomed by the Financial Services Council.
The amendments to the legislation, which was due to come into effect on 1 April, 2020, would provide additional time for impacted super fund members to opt-in to insurance if they wished.
FSC said the legislation would ‘provide certainty’ for consumers and was an important reminder for younger workers who were new to super.
FSC chief executive, Sally Loane, said: “This is an important reminder for all young workers to consider what cover they need. “Checking your super has never been easier – pick up the phone to your fund and discuss your options, because for some under 25-year olds, like those in high risk occupations or with young families, life insurance is a vital safety net.
“These changes will ensure that super funds have additional time to engage with their members about the changes, and that consumers will have time to make informed decisions about their insurance needs.”
She said the FSC would continue to work closely with Government, Treasury and regulators to make PMIF as simple as possible for consumers.