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MIESF adjusts insurance premiums

Meat Industry Employees' Superannuation Fund (MIESF) will increase total and permanent disability (TPD) insurance premiums by 5.4%, effective July 1.

MIESF said that while it has a history of providing good value insurance products at competitive rates, recent legislative reforms, the global pandemic, and changes in economic and social factors have had a "considerable impact on group insurance," resulting in higher premiums.

This increase, however, is part of a broader trend. TAL Life research indicates that from 1 July 2022 to 30 June 2023, there were 25 premium rate changes to super funds, with an average increase of over 9%.

The actual premium deducted from MIESF members' accounts will vary based on age.

For instance, for a 25-year-old, the weekly cost for $200,000 in death cover and $150,000 in TPD cover, will increase from $4.13 to $4.85. For a 40-year-old, the weekly cost for $200,000 in death cover and $35,000 in TPD cover will increase from $6.69 to $7.47. However, a 65-year-old with death cover of $35,000 and no TPD cover will see a decrease from $6.89 to $5.54.

Notably, the death and TPD benefit payable is restricted to half of the cover amounts until one year after MIESF receives an eligible member's first Superannuation Guarantee (SG) contribution; weekly cost remains unchanged.

MIESF said it aims to provide eligible members with appropriate and affordable insurance. Based on an assessment of members' needs, MIESF is confident its insurance strategy is appropriate, and premiums remain affordable.

"At MIESF, everything we do is to benefit our members and it is what we were set up to do," it said.

Read more: MIESFInsuranceTPDMeat Industry EmployeesSuperannuation fundSuperannuation GuaranteeTAL Life