Super fund members who take an extended period of time out of the workforce are being warned they could end up losing their insurance cover.
NGS Super has sounded the warning to members taking extended leave, whether it’s for parental leave, long service leave or any other type of leave, after the Protecting Your Superannuation legislation came into effect in July this year.
It outlined that trustees are “now required to stop providing insurance that is provided under a product to any member who has not opted in and whose product has been inactive for 16 months or more”.
Members will no longer receive insurance cover after 16 months unless they actively opt in for the cover.
Group life insurance is a way for Australian employers to provide basic life insurance to workers, including total and permanent disability cover through superannuation cover.