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Super fund increases premiums

A $117 billion superannuation fund is changing the cost of insurance across the board at the turn of the New Year.

Most QSuper members will see income protection cover go up 31%, while death and total and permanent disability (TPD) cover will increase between 40-45% from 1 January 2021.

One exception, income protection cover for Queensland Police Officers, will reduce by about 50% from 30 November 2020.

For those affected by the increases, a 40-year-old member for example, covered for death, TPD, and income protection earning $75,000 per year can expect an increase in total premiums of about $8.92 per week.

"As a profit-for-members fund, we don't increase premiums unless we absolutely have to," the super fund told members.

"We regularly review our insurance arrangements to understand the type and amount of benefits members are receiving, and premiums are adjusted when it is necessary to ensure that members pay the right level of premiums for their cover."

QSuper said over the past year, claims increased "significantly and were materially higher than expected".

"Because of this, and to ensure we can continue to offer insurance cover for our members in their times of greatest need, most insurance premiums will increase from 1 January 2021," the fund said.

In July last year, it announced some changes to income protection waiting periods and benefit periods.

Over the last financial year, QSuper paid over 6600 income protection, 700 TPD and 450 death cover claims.

Read more: QSuperSuperannuation
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