The Financial Services Council has the welcomed government legislation requiring young Australians with superannuation funds to opt in to life insurance from April next year.
Under the government’s Putting Members Interests First (PMIF) legislation, if you’re under the age of 25 or have an account balance below $6,000, from April next year you will be required to opt in for life insurance cover.
In a statement, the FSC said the legislation provides certainty to consumers and business.
FSC chief executive Sally Loane said that amendments to provide additional time for impacted super fund members to opt in to insurance were a sensible, consumer-focused change to the legislation.
“These changes will ensure that super funds have additional time to engage with their members about the changes, and that consumers will have time to make informed decisions about their insurance needs,” Ms Loane said.
“This is an important reminder for all young workers to consider what cover they need. Checking your super has never been easier – pick up the phone to your fund and discuss your options, because for some under 25-year-olds, like those in high-risk occupations or with young families, life insurance is a vital safety net.
“Life insurance through superannuation represents fantastic value with more than 80 cents in the dollar paid out from group insurance – unsurpassed anywhere else in the world.”
The FSC said it will continue to work closely with government, Treasury and the regulators to make the implementation of PMIF as simple as possible for consumers.
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