It used to be that life insurance through super funds was priced cheaply due to their group rates. However this may no longer be the case.
Over the last year research by Canstar has confirmed premium increases averaging between 11% and 27% for life insurance through super funds. Separate research by SuperRatings identified premium increases were highest in the not for profit (industry fund) sector with an average increase of 22.4% over the last three years.
Research firm Dexx&r has concluded that “members of many major super funds could now benefit from the enhanced cover and benefits provided by individual products at a significant price saving”.
Now might be the time to check whether your super fund insurance is good value or not!
Other recent changes mean that many insurers will now accept premium payments from your existing super fund. So you are no longer restricted to buying the insurance policies your super fund promotes. Some insurers will even discount your premium by 15% for paying with your super!