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While having suitable cover is the main concern, it’s a bonus when your fund has managed to keep a lid on costs
More than 70% of Australians hold life insurance through their super, according to ASIC’s MoneySmart.
Until October 2020, most super funds automatically provided members with death and TPD insurance cover. This changed through legislation that made super an opt-in choice for anyone aged under 25 or with a balance below $6000.
This year’s tables show some interesting trends. The category winner for men, AustralianSuper, hasn’t changed its pricing, new finalist Child Care Super has also provided sharp pricing and NGS Super has left its prices untouched from last year to retain third place.
“Providing cost-effective insurance to members is important to the fund and we’re always conscious of providing the best cover at the best possible price,” says Rose Kerlin, Australian Super’s group executive.
“AustralianSuper is a major fund and we have a lot of buying power, so we aim to have the best value premiums for members that we can.”
During the pandemic, community needs changed and insurers had to adapt.
“The increasing prevalence of mental health claims means that rehabilitation needs to provide tailored support to members and Covid-19 has meant that increased communication with members has been vital,” says Kerlin. “We have assured members that there are no pandemic exclusions for existing or new cover.”
AustralianSuper offers a comprehensive rehabilitation service for income protection that has recently been extended to TPD cover.
Kerlin says the fund helped more than 2100 of its members with rehabilitation in the last financial year. “Importantly, our insurer TAL is among the very lowest for claims processing time and disputes based on the ASIC MoneySmart claims comparison tool,” she says.
This year’s pricing for Best-Value Death & TPD Insurance for women was won by Virgin Money Super, which managed to provide sharper pricing than last year’s winner. Premiums for women seem to lurch heavily upwards from age 50, becoming more expensive than the costs for men. At 30, women pay less for insurance in this category and at 40 it’s largely gender neutral.
NGS Super and REST Super were second and third respectively in the women’s rankings and are both sharply priced in this category.
When it comes to TPD insurance, it’s not all about price; it’s important to read the fine print and understand exactly what you are covered for. Do your research before making any changes.