While insurance doesn’t usually seem like a very interesting topic, we are excited to share some recent changes to the insurance product that we think you’ll love!
Under new policy, we have been able to negotiate a 9% reduction in the premium for Death & Total & Permanent Disability (TPD) Cover. This means members with default cover will save between $17 and $64 per year (depending on their occupation group).
Noting that people’s circumstances differ greatly, we have introduced more customisation to our insurance product.
You now have the option to fix the amount of insurance you have for Death & TPD. This means, that instead of paying a fixed premium with insurance cover that changes over time, you can now have the certainty of locking in a desired insurance cover, having premiums that change with age.
For Income Protection we have historically only offered one waiting period (time off work before a claim can be made) and one benefit period (maximum period for which insurance cover can be provided) being a 60-day waiting period and a 2 years benefit period. While a 60-day waiting period and 2 year benefit period will continue as our default arrangement, you can now choose between a 2 year, 5 year, or to age 65 Benefit Period; and a 30-day, 60-day, or 90-day waiting period.
Changes to Our Default Product
As a fund we continue to balance the current needs of members with their future retirement needs. This means that we need to continue to weigh up the costs and benefits of insurance to members. This is particularly true for young members and members with small account balances, where costs (including insurance costs) have a much greater effect on their future retirement outcomes. In recognition of this fact we have made a number of changes to our default insurance (i.e. insurance that is automatically received when certain conditions are met).
Death & TPD
Eligible new members who join the Fund after 1 April 2018 will now receive Death & TPD insurance in accordance with the following table, based on their age and account balance.
|Aged Under 22||Aged 22 and Over|
|Account Balance Under $6,000||No cover||1 unit|
|Account Balance Over $6,000||3 units||3 units|
Insurance cover will change in accordance with the table when a member turns 22 and/or has their account balance reach $6,000.
If you are under 22 and would like some insurance cover with the Fund, just let us know within 180 days of joining and you will receive 1 unit of new events only cover without having to complete a health check.
Eligible new members who join the Fund after 1 April 2018 will receive Income Protection in accordance with the following table, based on your age and your account balance when you become a member.
|Aged Under 25||Aged 25 and Over|
|Account Balance Under $6,000||No cover||Depending on Occupation|
|Account Balance Over $6,000||Depending on Occupation||Depending on Occupation|
Your level of Income Protection cover will change in accordance with the table if you turn 25 and/or your account balance moves above $6,000 after you become a member. The level of Income Protection you receive with the Fund is determined by the occupation group you disclose on joining the Fund. This is explained further in the Insurance Guide.
If at any point in time, you wish to alter the cover you have on your account, please contact the Member Contact Centre.
Changes to our default product will mean that a Member who joins at 16 can expect to save over $9,000 in insurance premiums by the time they reach 70. This presents a substantial impact on the retirement outcomes of our Members.
The Insurance in Superannuation Voluntary Code of Practice:
We are also happy to confirm that the Fund is adopting the Insurance in Superannuation Voluntary Code of Practice. This initiative sets standards that will provide greater understanding, clearer accountability and consistency of delivery for insurance benefits provided in superannuation across the industry.
The information above is correct as of 1 April 2018 however presents only a summary of recent product developments. For more information, please read the updated Insurance Guide.
If you want to discuss any of these changes or how they may affect you, please call our Member Contact Centre on 1300 360 907 or via email by firstname.lastname@example.org.