The Royal Commission has certainly got people talking about some less-than-ideal insurance practices.
Recent findings from the Australian Securities and Investments Commission (ASIC) have revealed that some superannuation trustees list members as smokers, a default that may be a breach of the law.
Penalising members who do not answer questions about their smoker status, or providing insurance cover that turns out to be ‘junk’ and cannot be used, are just two issues super trustees are under fire for.
Why is this important?
It is generally accepted that insurance cover for smokers costs more. You might be paying for insurance through your super that you didn’t know existed, and you might be paying more because you have been listed by default as a smoker.
We recommend you check your super statements and see what sort of insurance cover you might have, and then check that your health profile is correct.