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REST launches improved life insurance
In a bid to meet its claim of providing insurance adequacy in Australia, REST Superannuation has announced major changes and improvements to its life insurance cover.
The launch of the new package this month means for the first time, almost a million Australians, including casual and part-time workers who can still find it difficult to obtain automatic insurance cover, will be receiving life cover tailored to suit their stage in life.
REST has worked on the development of the new design closely with AIG Life, which has been reappointed REST’s insurer.
REST also engaged CHR Consulting to carry out a comprehensive analysis of its members to help determine the most appropriate level of cover at various life stages.
“In deciding upon the new direction, REST took into consideration that members have different insurance needs depending on their life stage,” said REST chief executive Damian Hill.
“Our new cover is based on member needs instead of being based on a fixed cost.”
The new cover gives members the choice of a basic package of death, total and permanent disablement (TPD) and long-term income protection (IP) cover, or a mix of these depending on needs and budget.
The new design offers a “life stage” approach for death cover, with more appropriate levels of cover at different ages, and a “living benefit” approach for disability cover, with IP moving from a two year benefit to a long-term benefit to age 60, coupled with a smaller up-front lump sum TPD benefit.
Hill said REST’s new IP cover would also pay 9 per cent into superannuation.
“This is a benefit which helps to ensure members who are not able to earn an income due to sickness or injury will still have their super building for retirement,” he said.
AUTHOR
Lucie Beaman
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