Superannuation funds automatically provide a basic level of insurance cover to most members when they join. Insurance cover includes life insurance, total and permanent disablement cover, and income protection cover.
When selecting an employer superannuation fund, employers should check the level and options of insurance available that best suits the needs of the employer and employee. As mentioned in ‘how to set up a super for an employee’, employees also have the choice of their own super fund. Product disclosure statements can be found on super funds websites which will detail the insurer used and the cover available.
Proposed changes to insurance within super are to take effect from 1 July 2019. Insurance will be opt-in rather than default for members under the age of 25, members with balances of less than $6,000, and members whose accounts have not received a contribution in 13 months and are inactive.
Most industry and retail funds and master trusts provide adequate insurance options. To make sure your fund complies, check www.superfundlookup.gov.au
more articles about: guide to superannuation
- employer obligations
- superannuation reforms
- how superannuation works
- should they stay or should they go?
- superannuation contribution changes
- compliance options
- changes to SMSF Levy
- super contributions caps
- how to set up a super for an employee
- how much to pay and when
- help for small businesses
- modern awards
- insurance requirements
- salary sacrifice
- boosting employee super
- superannuation guarantee age limit
- records you need to keep
- the importance of communication