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SUPERANNUATION with Brendan O’Farrell<br />
<strong>QHA</strong> REVIEW | 44<br />
PROTECTING YOUR<br />
STAFF’S FINANCIAL<br />
FUTURE<br />
INSURANCE HAS LONG BEEN A FANTASTIC BENEFIT<br />
AVAILABLE THROUGH SUPERANNUATION.<br />
AND FOR MANY WHO WORK IN HOSPITALITY,<br />
INSURANCE IN SUPER IS A GREAT WAY THEY CAN<br />
FINANCIALLY PROTECT THEMSELVES.<br />
However, from 1 July 2019, some major changes could<br />
be coming to insurance in superannuation, subject to<br />
some May 2018 Federal Budget proposals becoming<br />
law. Many of your staff will need to be aware of this<br />
change, so they can make an informed decision about<br />
whether or not they should keep their insurance.<br />
WILL YOUR STAFF BE AFFECTED?<br />
Staff with a super balance less than $6,000, who<br />
haven’t contributed to their account for 13 months or<br />
more, could lose any default insurance they currently<br />
have as part of their super account. They may also<br />
have their super account transferred to the ATO. The<br />
cancellation of default insurance, or the transfer of<br />
an account to the ATO, will mean the affected staff<br />
members will no longer be covered by their super<br />
funds’ insurance cover. This could include life and total<br />
and permanent disability (TPD) insurance and income<br />
protection insurance. Staff will need to let their fund<br />
know if they want to keep their insurance as part of their<br />
super account.<br />
Intrust Super will be contacting all impacted members<br />
about the changes and to ask if they would like to keep<br />
their insurance. However, many people, particularly in<br />
younger demographics, do not keep up to date with<br />
communications from their super fund.<br />
My concern is that if your staff do lose their insurance<br />
benefits next year and need to make a claim in the<br />
future, this could cause them some significant financial<br />
difficulties.<br />
IS INSURANCE IN SUPER IMPORTANT?<br />
Insurance in super is a simple way for working<br />
Australians to protect themselves from the financial<br />
impact of illness or injury. Eligible Intrust Super members<br />
who may not normally take out insurance, whether for<br />
financial or eligibility reasons, currently receive automatic<br />
cover as soon as they join the Fund. Without this<br />
automatic insurance, some staff may struggle to protect<br />
themselves with adequate insurance cover.<br />
Eligible Intrust Super members can be covered for up<br />
to 90 per cent of their income with income protection<br />
insurance, and $300,000 with life and TPD insurance.<br />
Our insurance offering covers all eligible workers,<br />
including casuals. And with no access to sick leave, it’s<br />
these casual staff members that could need income<br />
protection the most. Without it, young staff members, or<br />
their families, may find themselves struggling financially if<br />
anything unexpected were to happen.<br />
HOW CAN STAFF KEEP THEIR INSURANCE?<br />
Staff with low balances or those who infrequently<br />
contribute to super should contact Intrust Super. Please<br />
let them know to call 132 467, or get in touch with their<br />
Relationship Manager directly for further information.<br />
GET IN TOUCH<br />
If you would like your staff to know more about the<br />
incoming insurance changes, your local Relationship<br />
Manager can help. They will be able to visit your<br />
workplace and provide assistance to any staff who<br />
would like to keep their insurance, or who would simply<br />
like more information. You can find your Relationship<br />
Manager’s details at intrust.com.au/your-team.<br />
The information contained in this article is of a general<br />
nature only, and does not take into account your individual<br />
situation, objectives and needs. You should consider the<br />
appropriateness of the general information having regard to<br />
your own situation before making any investment decision.<br />
A Product Disclosure Statement is available at www.<br />
intrust.com.au or call us on 132 467 for a copy. Issued<br />
by IS Industry Fund Pty Ltd | MySuperUnique Identifier:<br />
65704511371601 | ABN: 45 010 814 623 | AFSL No:<br />
238051 | RSE Licence No: L0001298 | Intrust Super ABN<br />
65 704 511 371 | SPIN/USI: HPP0100AU | RSE Registration<br />
No: R1004397Financial planning is provided by IS Financial<br />
Planning Pty Ltd ABN 64 143 707 439 trading as Intrust360°<br />
is a wholly owned subsidiary of IS Industry Fund Pty Ltd<br />
ABN45 010 814 623. Intrust 360° is a corporate authorised<br />
representative of Adviser Network Pty Ltd | ABN 25056310<br />
699 | AFSL 232729 | Corporate Authorised Representative<br />
Number 379207.
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