on air now

Super members could lose insurance on inactive funds

Super fund members will lose their insurance cover on inactive superannuation funds from next month.

Default life insurance policies, in funds inactive for at least 16 months, will be cancelled unless the super fund is contacted by the account holder.

The rule, taking place from June 1, is part of a suite of changes to reduce multiple super accounts held by an individual.

Assistant Minister for Superannuation Senator Jane Hume tells Ross Greenwood they are aiming to make the system more efficient.

“We want people to ideally consolidate into one single fund, so they only get hit with one set of fees and have one insurance contract.”

Click PLAY to hear the full interview