Industry super fund, Intrust Super has announced a substantial reduction in its income protection premiums.
The fund announced today that premiums on its income protection policy, PayGuard, will fall by 12 per cent from 1 October 2017.
Commenting on the premium reduction, Intrust Super chief executive, Brendan O’Farrell said reducing premiums would ultimately boost the retirement savings of participating members.
"We understand the importance of not only protecting our members and their families, but also their super balances,” he said. “Intrust Super continues to work hard to deliver insurance that meets our members' needs on a cost, coverage and accessibility basis.”
"Our PayGuard Income Protection premiums will reduce from 0.7 per cent to 0.615 per cent of gross income or in dollar terms, $7 per $1,000 of cover to $6.15 per $1,000 of cover. It will continue to cover up to 90 per cent of members’ wages plus an additional 10 per cent of the paid benefit contributed to their super accounts,” O’Farrell said.
“Insurance in superannuation works because it helps provide members and their families with the protection they need, with the convenience and cost benefits of being handled out of the super fund. However, it only works if adequate cover is provided, and if premiums represent good value,” he said.