Profit-for-member superannuation fund TelstraSuper has announced a significant decrease in insurance premiums for its members with income protection insurance.
Effective from 1 July 2023, members can expect reductions in their premiums ranging from 11.5 per cent to 30 per cent. This decision followed TelstraSuper’s comprehensive review of its insurance pricing.
One of the key drivers behind the decrease was the improved historical claims experience among the fund’s members, particularly older female members.
Fiona LaGreca, TelstraSuper’s head of insurance and claims, expressed her satisfaction with this outcome, emphasising the fund’s commitment to continually improving its insurance offerings for its members.
“Insurance available through superannuation is an important component of our members’ financial safety net and we have worked closely with insurer MLC Life Insurance to provide affordable premiums. This allows our members to allocate more funds towards their retirement while still benefiting from excellent coverage when they need it most,” she said.
In addition to the reduction in income protection premiums, TelstraSuper said it had maintained competitive rates on default death and total & permanent disablement (TPD) insurance cover. These rates were negotiated with MLC Life Insurance in 2020, resulting in an 8 per cent decrease.
“When we appointed MLC Life Insurance […] we were able to negotiate an 8 per cent decrease in default death and TPD rates against a backdrop of increasing insurance costs, so we are thrilled to be maintaining these competitive rates for another three years, to 30 June 2026 (except in very limited circumstances),” LaGreca said.
She highlighted another advantage for members who opted for the fund’s Corporate Plus insurance offering is many of these members have their insurance premiums paid for by their employers, ensuring the preservation of their retirement benefits.
Furthermore, members enjoyed a high claims acceptance rate of 98 per cent for the 2022 financial year, providing them with additional peace of mind, the fund said.
LaGreca shared that TelstraSuper members also have access to holistic health, wellness, and recovery program at no extra cost through its partnership with MLC Life Insurance.
“Wellness programs, which motivate healthy lifestyles and improve longevity, are becoming very popular with our members and are an increasingly important component in superannuation and insurance offerings,” she said.
