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Govt makes key concession on insurance inside super
The Federal Government has made a key concession on insurance inside superannuation for low balance members and those aged under 25 – allowing different arrangements for those working in high-risk occupations.
The assistant treasurer, Stuart Robert told the Association of Superannuation Funds of Australia (ASFA) conference in Adelaide today that the Government had agreed to an amendment following representation from a number of superannuation funds.
He said the amendment would see young or low balance members working in high-risk occupations not needing to opt-in, with the occupations deemed high-risk yet to be decided.
However, Robert made clear that the Government would not be delivering further concessions on the insurance inside superannuation changes, noting that its objective was to address the ongoing erosion of balances via fees and insurance premiums.
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So, will legislation require fund members get automatic insurance once they do turn 25, regardless of medical history, or will there be a requirement for underwriting now?
So do we now have to wait for the list of what the Govt regards as high risk & low risk?
So who will assist with the higher premiums that they will have to pay as they will no longer be assisted by the large numbers of insured members now not required to insure ?
And who will assist the young disabled members or their widows and orphans if they die, as they no longer fit the “high risk” categories ?
Who ever is allowing this wholesale adjustment has no experience in this industry.
I think the Government are happy to get rid of all insurance businesses and fund insurance themselves as the NDIS roll out has been so successful and has not gone overbudget at all (cough)