Big retail industry superannuation fund REST has announced a major insurance redesign including the removal of default cover for new members aged under 18.
The super fund the changes would result in its members paying up to 25 per cent less for their default insurance while maintaining valuable long-term Income Protection cover and would become effective from today.
It said the changes included simplified product design, plain English definitions and an enhanced life stage approach which mean members’ insurance cover automatically adjusted according to their age.
The changes will see default cover for new members under 18 removed, with Death and Total and Permanent Disablement (TPD) cover reduced for new members aged 18-34 years, while long-term Income Protection cover remains unchanged for all members.
Commenting on the move, REST Industry Super chief operating officer, Andrew Howard said the changes were the result of significant investment by the fund which were co-created with REST members and informed by years of experience operating the largest insurance pool in Australia.
The fund said that despite the increase in insurance claims and corresponding costs existing members will see no changes to their insurance premiums, with any individual increases in cost met initially by the fund’s insurance premium rebate.