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Tasplan raises IP premiums

The cost of income protection cover via Tasplan will go up by 7.3% at the end of September.

Tasplan attributed the increase to the trio of recent legislative reforms, current economic environment and increase in insurance benefits being paid to members.

It said it has fewer insured members covered by its group insurance policies after changes under Protecting Your Super and Putting Members' Interest First legislations.

For example, a 40 year-old member with income protection (two-year benefit) via the fund under the office occupational rating and a 30 day waiting period, will now pay $7.32 in net costs per $100 of monthly cover.

The same profile of cover previously cost $6.82 net - a rise of 7.3%.

Tasplan's net cost of insurance to members depends on their age, type of cover, the member's occupation rating (general, office or professional), waiting period (30, 50 or 90 days) and benefit period.

Gross cost includes a member's insurance premium plus an admin fee of 4% of the premium. Net cost is gross cost minus tax deduction of up to 15% of the premium.

Its group insurer for IP, death as well as total permanent disability (TPD) cover is MetLife.

Tasplan is due for 1 April 2021 merger with MTAA Super, creating a $22 billion fund.

In January, MTAA Super increased the cost of death and TPD cover for its members (its group insurer is also MetLife). Members between the ages of 27 and 55 were to see the cost per week of their death and TPD cover increase from $7.47 to $9.06, Financial Standard reported at the time.

On September 3, it named the executive lineup of the merged fund - hiring First State Super's (soon to be called Aware Super) head of systematic and impact investing Ross Barry as its new chief investment officer, among six other C-suite roles.

Read more: Tasplan
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