Superannuation Is Changing Again
From 1st July 2015 premiums for cover within employee’s superannuation will rise dramatically – up to 300% in some instances.
The reason being is because of wide spread losses due to increased claims and providers will be gouging superannuation balances in an attempt to recover past losses
For far too long insurances such as Life and TPD have been automatically deducted from employee superannuation contributions – many employees don’t even know this is happening.
While the insurance cover has been restrictive with many conditions (as against retail funds) the industry cover has been adequate to some level – protection has been provided without medical checks and sloppy language in policies has been exploited by lawyers.
APRA (Australian Prudential regulatory Authority) are fuming as their investigations have revealed widespread losses – with a majority of insurers having to bail out the business offering cover with in superannuation. – they have now raised the premium considerably – for example from 1st July IOOF are hiking death and TPD cover by 85% First Super by 78% and the rest are flowing this lead.
Now is the perfect time to look at alternative Superannuation funds with retail offerings for your personal protection plan – there are funds in the market now that offer you guaranteed capital protection which means in extreme volatility you will not lose your accumulated balance – we all heard stories and no doubt know people that lost 50% of their superannuation during the GFC .
Any advice provided in this publication should be considered General Advice as it does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate for you and whether you should act upon it.