HESTA has dropped insurance fees across its cover types by an average of 12 per cent amid a series of changes to make its insurance more affordable and accessible for members.
From 1 July 2026, HESTA members will see reductions in death, total and permanent disablement (TPD) and income protection cover.
There are also several changes for parents and upcoming parents who will benefit from strengthened protection during pregnancy as the fund has improved the insurance fee waiver during parental leave. It has also made it faster and easier for members to apply for insurance cover.
The upcoming changes around Paid Parental Leave from July also means HESTA members on parental leave will be able to maintain their cover without paying insurance fees for a full 12 months, extending to 24 months for a member whose baby is born prematurely.
Finally, HESTA is removing the automatic exclusion of disabilities related to normal pregnancy or childbirth or miscarriage, from income protection claims in specified circumstances.
The series of changes mean insured HESTA members will see average fee decreases of around 6 per cent for death cover and nearly 15 per cent for TPD, with income protection average reductions ranging from 1.4-23.5 per cent depending on benefit period.
This follows HESTA’s renewal of its partnership with AIA Australia last year, having first worked with the insurer in 2018.
HESTA chief executive Debby Blakey said: “Being able to keep insurance costs down and enhance protections is a fantastic outcome for our members who are feeling the impact of higher cost-of-living pressures.
“Around 80 per cent of HESTA members are women, many working in health and community services, dedicating themselves to looking after others. Providing access to appropriate, affordable insurance cover is a critical offering that can give our members and their families real peace of mind at a time when it matters most.
“For many of our members, the cover they have within their super is likely to be the only personal insurance they hold, which makes getting our insurance offering right all the more important.”
Members will receive communication about the changes later this month, with the updated PDS and Insurance options guide available on the HESTA website from 1 July 2026.
