Important insurance changes you need to know17 Sep 2018
Having the right insurance cover to protect yourself and your family is an important element of your financial wellbeing. At the same time, we’re very aware that Australian households are increasingly concerned about meeting living expenses.1
Insurance through your super provides cost-effective cover and has the added benefit of being deducted directly from your super account, with no impact on your household budget. We want to ensure that we continue to provide our members with cost-effective, valuable cover that’s relevant to your work and life.
Below you’ll find a summary of the changes we’ve made to our Death, Total and Permanent Disablement (TPD), and Income Protection (IP) cover.
Premiums have been reduced
From 1 July 2018, premiums for Death only, Death and TPD, and IP cover were reduced. Premiums have decreased by an average of 20%.
The benefit period for TPD and default IP will be increased to age 70 from 1 October 2018 (currently cover ceases at age 65).
Please note, if you have Income Protection cover with benefit to age 65 (rather than the standard five-year benefit period), your premiums have not changed.
Young members will no longer receive automatic insurance cover
Since 1 July 2018, new members under the age of 25 are no longer provided with automatic insurance cover. This will help younger members to preserve and build their super savings when they’re first starting out.
Once members turn 25, they will automatically be provided with default levels of Death, TPD and Income protection cover (subject to eligibility). Young members can apply for insurance cover at any time before their 25th birthday if they want cover earlier.
Members under 25 who joined Media Super any time before 1 July 2018 were provided with automatic cover and there will be no changes to this existing cover; however, you can reduce or cancel your cover at any time.
Overseas cover period increased
Many of our members, particularly in the media and entertainment industries, spend time working overseas. From 1 October 2018, the period of cover for eligible members working overseas will be increased to five years.
Other key changes
The following changes are also outline in the Significant Event Notice - Insurance (issued on 1/09/2018 and in your latest statement pack):
- increase to the maximum levels of cover for Death, TPD and Terminal Illness
- changes to the TPD taper rate for members over the age of 61
- new IP benefit period for claims for members aged 63+
- changes to important TPD definitions.
Please read the Significant Event Notice - Insurance (also included in your statement pack) for further details about these changes.
We're here to help
Figuring out if you have the right type and level of insurance cover isn’t always easy – that’s why we’re always here to help.
If you have any questions regarding these insurance changes or your cover, please call our Helpline on 1800 640 886. We can help you work out the right cover to ensure you and your family are looked after.
This article originally appeared in the Spring 2018 issue of Insider magazine issued with 30 June 2018 statements. Read the full issue.
1 Source: ME Household financial comfort report, February 2018.