On 1st July 2019 you could lose your cover and benefits within your superfunds. If your superannuation fund hasn’t received a contribution for 16 months, that membership will become inactive and you will not be covered for benefits such as total and permanent disability and income protection.
The new rule was made to protect funds from charging fees on memberships and eating away account balances where no contributions have been made. The reverse side of this is that members will lose their benefits and insurance cover under multiple funds as most employers contribute money to one fund only.
Prior to this, if you were a member of a fund and you had an account balance which was sufficient enough to keep the membership open, even if no contributions had been made for 6 years, you would be covered. Therefore, if you were forced to stop work due to an injury or illness, you could make a TPD claim on all your active memberships.
If you have been out of work for over 3 months, you must now act quick so as not to lose out on possible claims.
