Changes to superannuation legislation are being implemented as of July 1, prompting concerns for those with terminal illnesses or financial hardship needing to access early payments.
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The changes will see those who have not made contributions to a superannuation account in 16 months or more lose any default insurance they may have had, meaning if they fall terminally ill or have a valid reason to take out early contributions, they will no longer be able to.
People will have the choice of opting out to the insurance however before July 1, and finance expert at the Cancer Council, Michelle Smerdon, said people needed to be reminded before it was too late.
"A lot of people have default insurance attached to their super, like life insurance or total and permanent disability insurance, which can be attached without them even realising," she said.
"Someone may be paying premiums without knowing, but in many cases this is not such a bad thing."
The financial assistance program manager said superannuation insurance can be a huge relief for people diagnosed with cancer, as well as their families.
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"Insurance can be vital for someone with cancer, a terminal illness or someone who is permanently unable to work, because this can be a significant amount of money they can access to set their families up financially, pay off a mortgage, all those sorts of things," she said.
"A person needs to opt out of the insurance cancellation before July 1, otherwise they won't be able to access these lifesaving funds in times of need."
According to Ms Smerdon, not everyone will be affected.
"People who are working and are contributing will keep their default insurance, but those who aren't will not be getting that, even if the lack of contributions is because they have been unable to work temporarily or have swapped super funds or something like that," she said.
"For people wondering if they have super insurance now, we really encourage getting in touch with the super fund directly do see whether or not they need to opt in or out at all."
The Cancer Council have services in place to help people through their financial situation in times of need.
"The Cancer Council have a Pro Bono service which connects people with professionals in the local community who provide legal support to deal with issues like wills and powers of attorney and access to superannuation insurance," she said.
"Those already struggling financially due to a cancer diagnosis can call 13 11 20 and seek help through the Pro Bono program."
