Super fund bumps up premiums

Insurance premiums have risen by up to 21% for members of an industry superannuation fund.

As of this month, First Super and its group insurer MetLife have bumped up the cost of death, TPD and voluntary income protection cover.

According to the fund, the increase is a fixed percentage increase dependent on age, occupation and risk rating (standard/low/professional).

Upon joining First Super, members are defaulted four units of death and TPD cover. For those with a standard risk rating, this did come at a cost of $9.24 a week.

Now, the same members will pay $11.22 per week - an increase of 21.4%.

Those categorised as low risk would have paid $4.24 per week, while professionals were charged $3.84. These members will now pay $5.15 and $4.66 per week respectively.

Voluntary income protection premiums have also risen, going up by 4.2%.

First Super said the changes are the result of the Protecting Your Super legislation and claims experience.

At the same time, the $3.1 billion fund has introduced a new rule on how many Transition to Retirement Allocated Pension Accounts (TTR Pensions) can be opened in a single financial year.

The rule, which First Super says aligns with its goal to promote a dignified retirement for members, will see members limited to two TTR Pension accounts per financial year.

Read more: First SuperMetLife
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