AustralianSuper cuts insurance premiums

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AustralianSuper is decreasing some of its insurance premiums from May end, with members to see an average drop of 11%.

From May 28, the cost of death, TPD and income protection will change depending on their cover type and work rating, the fund said.

AustralianSuper says its priority is to offer sustainable and affordable insurance for all members.

australian super insurance premiums

"To do this, every year we carefully review the insurance products we offer and what they cost. This allows us to minimise the impact of increases to insurance costs, or even decrease costs, depending on the number of claims paid in previous years," the fund says.

AustralianSuper has seen fewer claims for death, TPD and income protection with a benefit payment period up to two years, meaning the cost of those cover types can decrease.

However, members with income protection with a benefit payment period up to five years or a benefit payment period up to age 65 will see the cost of their cover increase as claims have increased.

Across all ages and work category (blue collar, white collar and professional), premiums for death cover will drop 4-5% while the cost of TPD will drop by 15%.

The cost of income protection differs across work rating, age, benefit payment period and waiting period.

"AustralianSuper is run only to benefit members so these members will still only pay what it costs to provide their insurance," AustralianSuper says.

AustralianSuper's group insurance provider is TAL.

This article first appeared on Financial Standard

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Jamie Williamson is editor of Financial Standard. Prior to this she was a senior journalist, covering wealth management including financial advice, superannuation and life insurance. Before turning to journalism, she worked in public relations, specialising in financial services. She has a Bachelor's degree in communications from the University of Newcastle.

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