The new superlaws serve as a great reminder to review your life insurance policy.

What precautions have you taken to safeguard your family's home or business? If one of them is life insurance through your superannuation account, now is a good time to examine it, especially if you work in a high-risk environment.

We’ve all mentally turned off during those somber afternoon life insurance commercials on TV.

But bear with us, because there’s a reason we’re publishing this piece today: new superannuation legislation has passed parliament and will take effect on November 1st.

And if you have a super account, there’s a good possibility you have a life insurance policy tied to it that could be affected – especially if you work in a high-risk job like construction, truck driving, or mining.

What new legislation have been enacted?

As a result, the federal government recently passed the legislation Your Future, Your Super.

The measure, which takes effect on November 1 and ties workers to a single super fund, has been praised for its potential to halt the practice of people having many super accounts that are drained by different fees.

However, due to policy exclusions for high-risk occupations, people in hazardous industries such as construction, truck driving, and mining may be left without adequate life insurance and/or complete and permanent disability insurance.

Some super funds designed for specific industries are now automatically enrolling their members in insurance customized to their professions.

Others, on the other hand, do not.

“Most members don’t realize they’ve been paying for a product that’s basically useless until they become incapacitated and file a claim,” Hayriye Uluca of Maurice Blackburn told the Sydney Morning Herald (SMH).

If you join a fund that is linked to an insurer that applies occupation exclusions, you could find up paying for insurance that is essentially useless once you start working in a high-risk industry.

What should I do?

The US Treasury Department says it will investigate everything.

However, you can quickly and easily check to determine if you’re adequately insured by appropriate insurance.

Here’s a simple MoneySmart guide to using MyGov to consolidate your super. Here’s another checklist to keep in mind when selecting a super fund.

“The best thing to do is speak with your fund and ask specific questions. Tell them what you do for a living, your occupation, and what it entails, and see if their policy covers it,” SuperConsumers director Xavier O’Halloran told SMH.

While you’re at it, double-check your insurance coverage to see if it’s enough to help you – or your loved ones – make loan payments and protect essential assets like your business or family home in the event of a disaster.

If you’re not sure if your insurance coverage is adequate, give us a call and we’ll connect you with a financial advisor who can assess your situation and offer advice on your policy.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

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