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Perpetual has boosted the default insurance cover on its Select Super Plan and increased the flexibility and options within the plan. The move is part of an overhaul that also involved appointing AIA Australia as the plan’s insurance provider.
Super trustees have a responsibility to address the ongoing issue of underinsurance in Australia, according to Ian Pendleton, general manager of product and fiduciary services at Perpetual Private Wealth.
“Super is not only the most cost and tax-effective way for most people to insure themselves, it is often the only insurance cover many people have,” he said.
“What we are trying to do is provide greater flexibility so people can really design a complete insurance package for themselves through super,” he added.
Premiums have been reduced by up to 40 per cent in employer default funds, while total and permanent disability cover has been significantly boosted, the company said.
Other changes include the ability to transfer existing cover without risk assessment and salary continuance cover with flexible waiting and benefit periods.
Members will also have the automatic right to increase their cover after certain life events such as marriage, divorce, having a child, or salary increases of more than $10,000 per annum.
