Life Insurance Direct Press Release: Insurance in industry super funds set for price increase

The cost of default insurance that is held within industry super funds is set to increase as many of the contracts insurance companies have with super funds expires.

The increases, some believed to be by as much as 50 percent, are believed to be largely due to the increase in claims caused by the relative weakness in the economy.

With many people not even aware they have default life insurance within their industry super fund, Life Insurance Direct believe many people could be about to see their superannuation reduced, as default insurance is automatically applied to members fund unless they choose to opt out.

While the increases may seem substantial, it was still possible to get default cover from as little as $15.85 per week for a 45-49 year old across Life, TPD and Income Protection insurance.

Russell Cain of Life Insurance Direct said while life insurance inside an industry super fund may seem affordable, members needed to be aware of the challenges of holding insurance within super.

“Default cover is often minimal and may only provide several hundred thousand dollars worth of life insurance cover, which may not be enough. The policy may also have a number of exclusions, an earlier expiry age and it may also be difficult for you to access your benefit, particularly for TPD or income protection benefits.

If people are struggling to afford life insurance, it was worth their while to contact Life Insurance Direct to discuss their options– including taking out a fully comprehensive life insurance policy within super, rather than using default group policies provider through their fund.

“You should always shop around and find out what your options are. Insurers are now offering greater flexibility around life insurance, including bundled or combined policies, split policies and premium options.”

Life Insurance Direct is Australia’s No.1 in Life Insurance Comparisons, providing policy comparisons, educational information and comprehensive customer service to those seeking life insurance policies.

Lifeinsurancedirect.com.au is owned and operated by xLife Pty Ltd, a corporate authorised representative of Millennium3 Financial Services Pty Ltd, AFSL No. 244252.