Two industry superannuation funds have made commitments to reduce group insurance premiums for their members.
In a deal with TAL, Cbus members will see premiums reduced by 25 per cent per unit of death and TPD cover effective from 30 September, Cbus said in a statement.
This includes a 40 per cent reduction to TPD for manual members and 44 per cent to TPD for non-manual and professional members.
Premiums for income protection accident-only cover for sole traders will also be reduced by 44 per cent.
Cbus chief executive David Atkin said default cover for 15- to 20-year-olds will also be reduced.
“Recognising the need to maximise their super savings early, we have moved to reduce their default insurance costs from $7.16 per week to $2.68,” Mr Atkin said.
“These changes recognise the different needs of our members at different stages in their lives, with a focus on ensuring they’ve got the cover they need while maximising their retirement outcomes.”
Separately, Hostplus also announced its members received at least a 6 per cent reduction to their death and TPD premiums from 1 July, with members maintaining their current insurance terms and conditions through to 2020.
Hostplus chief executive David Elia said the saving is its second consecutive insurance discount in less than two years.
“We’re committed to providing great value and maximum return on our members’ investments,” Mr Elia said.
“In a period where many super funds have been challenged by increasing premiums and reduced cover, Hostplus continues to leverage our growth and scale to deliver comprehensive and affordable insurance to our members.”