POWERED BY MOMENTUM MEDIA
Higher premiums under NGS Super’s new insurance deal
NGS Super has announced the launch of a new insurance product that provides insurance appropriate to different life stages.
Starting 1 July, and provided by the fund's current insurer CommInsure, the insurance product will mean higher premiums and lower total and permanent disability (TDP) coverage for members.
"If we'd not changed our insurance, our premium increase would've been a minimum of 30 per cent. It could've been more, and it could've been more at different ages," NGS Super's general manager Laura Wright said.
She said the insurance is tailored to different age groups and the fund is moving income protection from a two-year to a five-year benefit.
Taking a "glide path model", the fund said members can tailor their cover by dialling up or dialling down cover, or apply for additional cover.
At present, a 40-year-old would receive a default TDP lump sum payment of just over $238,000. Under the new arrangement they would receive $140,000, with the option of increasing it to $252,000 within four months of joining the fund.
Their premiums will jump from $2.16 per week to $6.85 per week.
A 50-year-old used to receive $88,000 for death and permanent disability. Under the new deal, their death cover would increase to $390,000 and the permanent disability cover would increase to $110,000.
Product manager of the fund John Pedersen said there would be a shift in premium levels as funds move towards a user-based model.
"Previously, there has been a certain level of cross subsidies, which now under the MySuper regime is not really a supported approach," he said.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
