Industry fund previews new insurance offering

A $57 billion industry superannuation fund has revealed details of its new group insurance offering, having transitioned to a new provider as of this month.

As of December 1, the group insurance available to Rest members is provided by TAL after the super fund ended its 15-year relationship with AIA Australia earlier this year.

Under the new mandate, Rest will roll out a renewed insurance offering on 1 April 2020 with insurance premiums changing in line with the new cover. There will be no change to members' cover until March 31 and, from April 1, the level of life and TPD cover will remain the same.

In addition to several other changes, new life event cover will be introduced, allowing members to increase cover at certain times without a major health check. Members will need to answer a few health questions within 90 days of the event or 90 days of receiving an annual statement.

Meanwhile, all cover types will now be available to all members aged between 18 and 70 years.

Members will also be able to transfer any existing death, TPD and income protection cover they have into Rest, even if it's not with a super fund.

Rest will also change its default income protection benefit period from up to age 60, to a new default period of up to five years.

"While this generally reduces the amount of cover you could receive, the good news for most members is it also reduces the overall cost of their cover," Rest said.

A range of new waiting and benefit periods for income protection cover will also be introduced for existing members, allowing them to tailor their cover. At the same time, any income protection benefit paid will be less likely to be reduced by government benefits, Rest said.

Other highlights of the revamped offering include a simplified definition of TPD that removes specific hours worked or time period requirements and simplified underwriting.

According to the fund, more than $411 million was paid in claims to Rest members last year alone.

Read more: RestAIA AustraliaTAL
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