Super Fund Removes Insurance From New Product Offering

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AustralianSuper has removed default life insurance from a new superannuation product that will be available to short term employees, in an effort to avoid erosion of fund balances due to insurance premiums.

AustralianSuper Group Executive, Membership, Rose Kerlin

The new product – Super Only – will still allow fund members to access life insurance via Australian Super if they consider it necessary, which is currently provided to the fund by TAL.

AustralianSuper stated that Super Only would be suitable for disabled people employed under the Supported Employment Services Award, short term employees and seasonal or intermittent employees working less than six months.

AustralianSuper Group Executive, Membership, Rose Kerlin said, “People are often working short-term contracts and more and more people with disabilities are finding work as well”.

“Our internal analysis shows there are about 100 businesses, employing over 30,000 people who contribute to the Fund who could benefit from Super Only,” Kerlin said.

Access to the product will be vetted to ensure it is being used appropriately, and employers will be required to complete an application form and sign an agreement with AustralianSuper.