Sunsuper will increase premiums for total and permanent disability insurance from 1 January 2021.
This is the first increase for Sunsuper members since 2014. A 35-year-old female with default cover for example, will pay an additional $0.52 per week or $27.04 per year. The largest overall increase for a member with default cover is about $1.36 per week or $70.72 per year.
The $72 billion super fund (at October-end) recently announced several changes to its insurance offering, which included updating the TPD definition AIA insured Sunsuper for life Corporate plans, and Sunsuper for life Business plans.
Members with TPD cover who experience a catastrophic event or are diagnosed with a specified medical condition with no chance of recovery may be paid a single lump sum benefit with no waiting period, updated definitions show.
The medical conditions also now include items such as chronic lung disease and cardiomyopathy.
Other changes the super fund introduced include: changing the TPD assist payment structure to pay a higher amount upfront, removing the time limit on lodging TPD claims, and increasing the circumstances in which a lump sum would be paid.
The activities of daily work definition and certain limitations have been removed to make it easier for members to get insurance.
Many members will also see premium reductions, especially for death cover and, in some cases, income protection cover, chief financial officer Jason Sommer said.
"As a profit-for-members fund, we only increase insurance premiums as a last resort. In this case, it has been over six years since our last standard death and TPD premium increase and we're confident that the product benefits we've been able to negotiate for our members are in their best interests," he said.
Sunsuper's size and scale mean it can provide flexible and affordable insurance for members, Sommer said, and continue to provide a sustainable, value-for-money and competitive insurance offer in the years to come.