Insurance in super
Grandfathering of pre July 2014 insurance policies
The 1 July 2014 rules do not apply to existing policies taken out in respect of a member prior to 1 July 2014. Therefore, members will generally be able to continue cover under an existing policy after 1 July 2014 where they were covered under that policy prior to 1 July. This applies regardless of the type of cover or benefits provided.
Under the grandfathering rules, the Government has also confirmed that a member is able to vary the level of cover under a grandfathered policy. For example, where a super fund may allow a member to increase or decrease the level of cover held under a grandfathered policy after 1 July 2014 without affecting its grandfathering status.
However, it is not clear whether other significant changes, such as converting an existing income protection policy from an indemnity to an agreed level of cover would continue to be covered under the grandfathering rules.
Last modified: Tuesday, May 2, 2017