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CommInsure looks to tackle underinsurance
CommInsure's new ‘life events' cover will allow members of Tasmania's Retirement Benefit Fund (RBF) to alter their level of coverage without the need for underwriting when a significant life event takes place.
The changes to the insurance offering apply to existing death and total permanent disability (TPD) and income protection products for members of RBF's defined contribution scheme, the RBF Tasmanian Accumulation Scheme.
According to CommInsure, members will be able to complete a simple application when changes to cover, including consolidation of insurance, are required during major life events such as marriage or having a child.
This will be in addition to the current default ‘life stages' cover held by members, which provides different levels of cover based on a member's age.
CommInsure head of industry funds Frank Crapis said the insurance offering had been well received by RDF members, considering the fund had made a "big move" to go from an insourced to an outsourced model.
Crapis said CommInsure carefully considered the demographic profile of the fund when selecting ‘life events' for cover.
"We try to select those events that will help the fund better engage with their members or help them identify when a member is likely to be engaged with the fund," he said.
In further changes to its offering, members with income protection insurance who are left disabled may be eligible for an additional Superannuation Guarantee equivalent amount, on top of an income replacement benefit of up to 75 per cent of the member's salary.
CommInsure stated that members over age 60 are able to apply for death and TPD cover up to age 70. Income protection cover to age 65 is available to members over the age of 60 who are still working.
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