text size
  • -
  • =
  • text size
  • +

Changes to First Super insurance premiums

May 24th, 2015

Many Australians know it makes sense to buy insurance through their super fund and First Super makes insuring against the unexpected easy and cost-effective.

Insurance in super costs are paid from your super account, compared to insurance outside super, which is generally paid from after-tax dollars.

First Super recently notified members of a change to insurance premiums effective as of July 1, 2015. It’s important to know how these changes affect you.
A range of factors has forced superannuation funds to lift insurance premiums by similar, or in some cases, higher amounts. First Super has responded to these issues to ensure its members retain the same quality of insurance.

A rising number of insurance claims across the super industry is the major reason why premiums have changed. Many Australian super funds have experienced a jump in claims as economic conditions have weakened and more consumers become aware of their insurance entitlements.

Claims against total and permanent disability (TPD) insurance have increased significantly. These claims are more than double the estimates current insurance premiums are based on.

Some super funds are coping with the increase in claims by tightening their definitions of total and permanent disability. This helps them save money by making it harder for members to claim benefits. It’s important to note that First Super has not changed any definitions within its policies. The current level of cover members have will not change, nor will the benefits they can claim. So members can rest assured they will enjoy the same high standard of insurance as always.

This is the first time First Super has increased its premium rates since 2012. These rates are locked in for 15 months. So with the exception of an unexpected severe event, members are protected from any further premium rises for 15 months from July 1, 2015.

Members can be confident that First Super is still the right choice when it comes to competitively priced insurance. First Super has minimised the impact of premium increases thanks to a healthy market position and strong relationship with its insurer, MetLife.

These changes affect First Super members as government regulations require all default super funds to have a minimum level of death and disability insurance.
Many First Super members were automatically covered for four units of Death and TPD insurance when they first became a member. Income protection is voluntary and not automatically provided to members.

While the default insurance provides basic cover, it is important to have the right amount of insurance to cover your individual needs and circumstances.
If you have recently experienced a major life event such as getting married, having a child or buying a new home, it is worthwhile taking the time to assess your insurance to make sure you have sufficient cover.

Whether it’s income protection, death or total and permanent disablement, First Super can help you find the cover that’s right for you. First Super offers affordable insurance paid directly from your super account, not your hip pocket.
This means you may pay less than insurance products offered by banks or insurance companies.

You can find out more about First Super products or change your insurance details at any time*. Our Customer Service Officers are here to help you adjust your insurance to suit your needs.
To increase or apply for insurance cover, you can also apply online through the Insurance eApply link on our website, we also have an Insurance Calculator so you can get an instant quote before applying .
For further help, feel free to email or phone us. Just visit the Contact Us page for details.

*Change may be subject to underwriting.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fund (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as investment advice. Content was accurate at the date of issue, but may subsequently change. You should contact us on 1300 360 988 for updated information and to obtain a copy of the product Disclosure Statement.