Australian Ethical has made a raft of changes to the terms and conditions in its superannuation insurance offering.
The ethical super fund has issued a significant event notice to its members outlining the changes to default death and total permanent disability (TPD) cover and fixed cover which includes death, TPD and income protection.
The default death and TPD cover which was previously provided as three units under a unitised scale will move to an age-based cover scale and will change over time with the typical member having a reduction when they turn 40 from October 14.
In addition, the premiums members will pay are set to be based on age, gender at birth and occupation, increasing annually on the members' birthday.
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The occupation category will no longer affect the amount of cover that a member gets but instead the premium.
Members that have fixed death and TPD or income protection will not have changes to cover and will remain the same until the age of 61 at which point it will start to reduce until it reaches zero at age 70.
Australian Ethical noted there will no longer be a distinction between employer-sponsored members and personal members and instead the premiums will change to fixed cover rates which will be based on level of cover, age, gender at birth, occupation category and smoker status.
Members who do not want their current default cover to move across to the new terms and conditions having until October 13 to change it to fixed cover.
Whereas members who have previously elected to have a specific number of units of death and TPD cover will be automatically moved to fixed cover unless they opt to change to the new default cover by October 13.