Insurance in super is changing on the 1st of July 2019

April 24, 2019



Do you hold insurance in your superannuation account? Changes are coming that may affect your cover. As of the 1st of July 2019, insurers are required to cancel the insurance policies held in inactive superannuation accounts. 


So, what does this mean?  Well, if you have an account balance of under $6,000 or do not receive employer contributions and you hold insurance in your super fund, then, unless you take steps to keep it, your insurance may be cancelled on the 1st of July. 


The government has made these changes in order to protect people who hold multiple small superannuation accounts and may inadvertently be doubling up on insurance, and therefore insurance premiums. It is designed to make sure that small super balances are not eaten away by insurance premiums. 


While this is good in concept, the implementation has landed us all with a few complications. Firstly, as default insurance is usually low, having more than one life policy may not be a bad idea. Secondly, and the biggest worry is that people, who would like to keep their insurance, will have it cancelled. 


Many people move their super to a more appropriate product, keeping a small balance in their previous fund to keep their insurance going. This may be because they have health issues that stop them from getting new insurance. The insurance in the old fund may be all they can get, losing it would leave them vulnerable. 


How do you keep your insurance?


Your insurance/superannuation provider will be writing/emailing you should you be one of those facing the cancellation of your insurance. I encourage you to open all mail or emails from your providers as they will contain very important information. The two options to make your account active are to make a contribution or complete the form you will be sent by your provider telling them not to cancel your insurance. 


It is very important, if you want to keep your insurance, to follow the instructions in that communication.


Here is a summary

  • If your account is deemed inactive you will receive a letter or email

  • Please open that communication

  • Follow the instructions in that communication if you want to keep your insurance in place

  • If you receive a letter/email and are unsure of what to do, feel free to get in touch with us here at BGN Financial. 

  • If you do not receive a communication from your insurer/super provider, you are not caught up in this. 

I hope this blog has given you a heads up, please feel free to get in touch with any questions that you have. 


Don't forget to register for our workshop in the 25th of May. Click Here.


Until next time


Ben Graham-Nellor


Stay in touch with all of our content. Click here to subscribe.


Ben Graham-Nellor is an adviser, coach, blogger and speaker who has worked in the financial services industry for over 15 years. He believes that by educating and advising people today, they can improve their tomorrow. 


BGN Financial Management Pty Ltd is a Corporate Authorised Representative 468796 of Professional Investment Services Pty Ltd AFSL 234951 ABN 11 074 608 558


The information in this communication has been prepared on a general advice basis only. The advice has been prepared without taking account of your specific objectives, financial situation or needs. Accordingly, you should, before acting on the advice, consider the appropriateness of the advice having regard to your objectives, financial situation and needs. In cases where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a Product Disclosure Statement (or other relevant information statement) and consider such document before you make any decision about whether or not to acquire the product. For these reasons, it is imperative that you seek advice from your financial adviser before making any investment decisions.







Share on Facebook
Share on Twitter
Please reload

Featured Posts

Smart.Happy.Money 6: Credit Cards are Killing You

January 22, 2019

Please reload

Recent Posts
Please reload

Please reload

Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

P. 1300 592 539


Or click here for our booking/contact page

THE LEGAL STUFF is a trading name of BGN Financial Management PTY LTD

Ben Graham-Nellor is a Sub Authorised Representative (291391) of BGN Financial Management PTY LTD (ABN 45 672 104 196) which is a corporate authorised representative (468796) of Professional Investment Services Pty Ltd (ABN 11 074 608 558) which is the holder of Australian Financial Services License No.234951.

The information provided on this website has been provided as general advice only. This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. By entering your details to this website you are agreeing to be added to the BGN Financial Management contact list and will receive, from time to time, newsletters, updates and invites to events etc.  You can opt out at any time by emailing

Professional Investment Services Pty Ltd | ABN 11 074 608 558 | AFSL No. 234951 

Website | 

Financial Services Guide | 

Neeliya Cooper Credit Licence No. 501079 Ph : 0419260226

  • Facebook Black Round
  • Twitter Black Round