Consolidating superannuation carbon dating explanation for kids
For many Australians this is the only cover they have.
Until something changes however, it appears Australians are going to be reliant on their own ability to assess the risk of these types of transactions themselves or make the decision to seek advice from a specialist.
Strategic Insight, Marketer View – Retail managed funds, December 2017.
The growth of lost super in Australia has become a substantial problem with some billion allegedly sitting in about 6.3 million unclaimed super accounts.
Have I had any health-related issues that could prevent me from obtaining insurances in the new super fund or elsewhere?
and What could be the financial impact on my family if I died or became permanently disabled, after I consolidated my super, and potentially lost my insurances from the previous funds?
The expectations from the public is that there should be fail-safes, a standard of protection, in place with these types of self-directed services which are at least the equivalent to that which an adviser is expected to provide an individual when consolidating super.
Offline transactions via paper-based forms need to protect the individual by compelling the recipient fund to gather the information about insurances and issue a confirmation of insurance losses before the consolidation takes place.
Again, this would allow the recipient fund to offer a comparable level of cover as part of the transaction, subject to medical underwriting. This simple statement by the recipient super fund would provide a safety net to an individual who wishes to manage their own financial affairs but lack some of the technical information that would usually be provided by an adviser.
Additionally, consolidation can also help to reduce the costs of management and simplify estate planning.
However, the problem with this new trend lies in many of the super consolidating forms, and some online systems, which omit sufficient reference to the potential loss of personal insurances via the consolidation process.