Industry fund reduces insurance premiums

An industry super fund with $2.1 billion in assets under management is reducing its premiums on its income protection policy.

Intrust Super's PayGuard policy premiums will reduce as much as 12% effective 1 October 2017.

Intrust Super chief executive Brendan O'Farrell said premiums will drop from 0.7% to 0.615% of gross income based on a member default 21-day waiting period.

In dollar terms, this equates to $7 per $1000 of cover to $6.15 per $1000 of cover. It will continue to cover up to 90% of members' wages plus an additional 10% of the paid benefit contributed to their super accounts, he said.

Members earning $75,000 will now pay $461.25 in premiums, a saving of $63.75.

PayGuard covers members up to a maximum of $50,000 per month and for up to 104 weeks, while the maximum benefit for a mental condition is 52 weeks, the product disclosure statement shows.

O'Farrell added the move ultimately boosts the retirement savings of participating members.

"Insurance in superannuation works because it helps provide members and their families with the protection they need, with the convenience and cost benefits of being handled out of the super fund. However, it only works if adequate cover is provided, and if premiums represent good value."

In the last financial year, Intrust delivered a 12.15% return and within the top ten of all MySuper balanced options. It has more than 124,000 members and 15,000 employers.

Read more: Intrust SuperPayGuardBrendan O'FarrellIncome protection premiumsMySuper
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