Your Clients Unprotected?
Whilst it has always been a common strategy to assist clients consolidate their superannuation accounts, the new laws could leave many Australians without adequate insurance cover and your clients unprotected.
Taking effect from 1 July, life and disability insurance will lapse if your superannuation account has been inactive for 16 months and you have not told your fund that you wish to maintain this cover.
The laws were amended to prevent superannuation balances being eaten away by insurance premiums and fees. Whilst this is a positive step, with the majority of Australians having their only life cover through their super fund, what will be the long term impact on families if this cover is lost simply because they didn’t realise they needed to do something right now.
time to take action
As most clients have insurance cover attached to their superannuation account, now is the time you should be touching base with them to ensure they have taken appropriate action. Not only a valuable touch point for the year, a most important one for 2019.
It is also a great opportunity to get your clients to link their myGov account to the ATO where they can view what super accounts they have. You may find they have super funds you are not actively managing or they had forgotten about and you can assist them consolidate and maintain their insurance cover.
AdviserLogic makes it easy for you to communicate
to all your clients via bulk SMS message or bulk email
This one can’t wait for the next client review!