Recently, the Federal Government has passed temporary legislation that allows some Australians to access $10,000 to $20,000 of their superannuation.
However, last year, the Federal Government passed legislation last year cutting off insurance (such as death, total and permanent disability, or income protection) for inactive super accounts with balances that have never been greater than $6,000, and for new account holders younger than 25.
It may be of concern that withdrawing $10,000.00 might reduce a superannuation balance to less than $6,000.00, and that person might then be left with no insurance.
In response to this concern, the Assistant Minister for Financial Services Jane Hume clarified that people who withdraw from their super in the coming months would not lose their insurance, even if they fall below the threshold.
“If your account is active and has been greater than $6,000 at any time after 1 November 2019, your insurance will not be switched off,”.