Intrust Super will also reduce life and total disability insurance premiums shortly after it dropped income protection premiums by as much as 12%.
The discount will impact the fund's life and TPD premiums across three products: Core MySuper, Executive and Select, said Intrust chief executive Brendan O'Farrell.
New rates will take effect on 1 January 2018 and will be locked in for the next three years.
"It is so important to not only protect our members and their families, but also their super balances. Intrust Super continues to work hard to deliver insurance that meets our members' needs on a cost, coverage and accessibility basis," O'Farrell said.
This month, the super fund reduced PayGuard policy premiums.
"We are so pleased to have been able to achieve this fantastic outcome again for members. Being able to reduce the income protection premiums in October was a great result. But to also reduce the premiums for our group life cover as well, is such an outstanding outcome for our members," he said.
During FY17, Intrust delivered a 12.15% return and placed in the top 10 of all MySuper balanced options.