November – Minerds Bell Newsletter

Client Bulletin

from Daran Thompson – Senior Financial Planner at Minerds Bell Consultancy Group

 

Hi, I’m Daran Thompson, one of the senior financial planners here at Minerds Bell.

Welcome to our November bulletin.

Like Natalie Bordun who you met in our September bulletin, I’ll be well known to some of you, but not others.

I’ve been a financial planner since 2004 and with Minerds Bell for nearly 10 years. I look after just over 150 of our fee-paying clients providing service and on-going advice to help them keep on track. It’s a very busy role, but one I really enjoy. Most of my work involves superannuation and pensions. For our retiree clients, this often involves centrelink as well. I also have quite a few “pre-retiree” clients with insurance.

 

“Protecting Your Super” regulations

This month I want to draw your attention to these regulations that were introduced a couple of years ago and are occasionally catching people unaware. They were brought in to ensure that:

  • Clients aren’t paying for insurance cover they don’t know about or require, and
  • Superannuation account balances aren’t unnecessarily eroded by insurance costs.

The regulations mean that if you haven’t paid into your super account for 16 months, the fund will cancel your insurance unless you tell the fund you want to keep it. The onus is being placed on you to let them know your intentions.

There are many good reasons that you may not be paying into your super fund including: –

  • It’s an old fund that has insurance cover attached to it. You might have started a new, more appropriate fund for your needs but have kept the old one because it has insurance in it that you can no longer qualify for. You’ve kept the fund and the balance pays the insurance premiums. You might pay into this old fund every couple of years just to ensure the balance covers the insurance costs, or
  • You are coming up to retirement (or you might be retired) and most of your funds are in a pension but you’ve kept your super fund because it has insurance that you still need. Maybe you still have a mortgage or younger kids.

Problems arise when the super fund writes to clients because they haven’t paid into their super for 16 months and the client doesn’t reply. If you want to keep the insurance you must tell them, otherwise they will cancel it.

If the insurance policy is cancelled, it’s extremely difficult (to almost impossible) to get the cancelled insurance policy reinstated.  If you can no longer get insurance due to your health and you still need it, this is a big problem.

To be fair, often the letter you get from the various super funds can be difficult to understand.

If you do get a letter from your super fund mentioning “Protecting Your Super” regulations, or telling you they are going to cancel your insurance and you aren’t sure what to do, please don’t ignore it. Give us a call and we can explain it and provide assistance as to what to do. We are here to help.

Finally, as mentioned last month by Drew, if you do get invited to participate in our upcoming “client experience survey” I’d encourage you to complete the survey for us. It does take 10 – 15 minutes, but it will give us the feedback we need to get better at what we do for you.

As usual, we’ve included some articles that we hope you find interesting.

Bye for now,

 

Daran Thompson

Senior Financial Planner – Minerds Bell Consultancy Group

 

 

 

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