Last year all insured AMG Super members were sent a Significant Event Notice (‘Notice’) dated 1 March 2020 titled ‘Important changes to your insurance from 1 April 2020’. The primary purpose of the Notice was to inform members of changes to their insurance cover through AMG Super from 1 April 2020.
After sending this Notice, it has come to our attention that there was an omission in the Notice that should have been disclosed. Specifically, this omission related to Total and Permanent Disability (“TPD”) insurance cover and the application of tapering. TPD tapering is where a member’s level of TPD cover automatically reduces each year following their 61st birthday.
TPD tapering within Super funds assumes that for the majority of members the need for TPD will reduce, as the member approaches retirement age. As you would be aware TPD premiums also begin to significantly increase towards age 65, so TPD tapering is also aimed at mitigating this.
A copy of the letter that is being sent to all members can be found here.
No action is required by members or you as an adviser.