Perpetual Limited has appointed AIA Australia as the new underwriter for its Perpetual Select Super Plan, significantly increasing default cover for its members and introducing more flexibility in its cover options.
Replacing ING Australia, the new AIA insurance package sees substantial increases to default cover levels for death and TPD. For example, default cover for those aged 40 - 44 increases by a factor of ten, from $20,000 (death only) to $200,000 (death and TPD).
At the same time, premium rates gave been reduced by 40% in the plan, and a number of features have been added, including:
- Transfer of existing cover into the fund without risk assessment
- More flexible waiting periods and benefit periods under salary continuance cover
- Future insurability option events (no underwriting), including:
- Marriage or divorce
- Child birth or adoption of a child
- Salary increases by more than $10,000 pa
The issue of underinsurance was a strong motivator for Perpetual in its decision to re-vamp its insurance offering, which applies to both its individual and employer-sponsored members. In particular, Perpetual referred to the recent LifeWise/NATSEM Underinsurance Report, which found that one in five Australian families will suffer the death of a parent or a serious accident or illness that renders a parent unable to work (see New Underinsurance Findings - Australians Gambling With Their Future).
Perpetual Private Wealth’s General Manager of Product and Fiduciary Services, Ian Pendleton, said superannuation trustees have a responsibility to help Australians address the ongoing underinsurance problem: ”Super is not only the most cost and tax-effective way for most people to insure themselves, it is often the only insurance cover many people have,” said Mr Pendleton.
