As part of a recent upgrade to the Aon Master Trust, new members of the Trusts’ Personal Super stream will now receive automatic minimum insurance cover against death and total and permanent disability (TPD).
Effective from 1 July 2010, new Personal Super members of the Trust will receive an automatic minimum cover level of $231,525 for both death and TPD up to age 42 (inclusive), with this level reducing to nil at age 65. If members opt out of this offer, any future insurance cover applications will be subject to underwriting.
Aon also advises that for the first two years of membership, the minimum level of insurance cover is for new events only.
… it is rare for auto cover to be offered to individual members…
While automatic cover minimums are a normal component of group insurance contracts, it is rare for auto cover to be offered to individual members of the personal stream of a superannuation or investment trust.
Commenting on this initiative, Aon Consulting’s Head of Retirement Products, Peter Lewis, said: “The introduction of default insurance for new Personal Super members … will offer superior cover for members and protect them by providing basic cover without having to go through underwriting.”
Click here to access a copy of the new Aon MasterTrust PDS.
