Do you check what your industry super fund sends you?
If you are with an industry super fund, have you checked the insurance that is within your fund?
Over the years, Industry Super Funds have been able to offer a very competitive premium on basic level personal insurances. This has all now dramatically changed.
In the past 12 months, you will notice (or may not have) that your premiums within your fund have increased quite dramatically.
This is due to the amount of people who are insured within the group insurance scheme has drastically reduced, along with increasing claims has led to the need for them to increase their premiums. After all, they are a business and have to make a profit.
This seems to have led to some underhanded practices by some of these industry super funds as shown by the recent action by ASIC against them for charging members premiums for cover they don’t even have!
So, what happened to make ASIC take the industry super fund to court?
“ASIC alleges that from May 2017 to June 2020, Statewide: sent annual statements and warning letters to approximately 12,500 fund members, representing the held insurance cover at a time when those members did not have cover under a Statewide insurance policy; and deducted monthly insurance premiums (worth a total of approximately $1,500,000) from superannuation accounts of certain fund members when those members did not have cover under a Statewide insurance policy,” ASIC said.
Do you have someone who looks after your insurance?
At the time of claim with one of your insurance policies, do you want you or your family members to be dealing with the insurer directly?
Ideally, you would have an advocate go to the insurer on your behalf with years of experience and knowledge in order to make a successful claim.
For more information or see FAQ's about life insurance and income protection. If we can help connect you with other professionals, please connect with us below.
*As outlined in an article from ifa.com.au