Currently, many members have age-based income protection cover that may exceed their annual salary, particularly those earning less than $25,000. In such cases, the existing cover could lead to higher premiums without corresponding benefits, as claims are typically capped at a percentage of the member's pre-disability income. By standardising the default cover to $1,000 monthly, AustralianSuper seeks to provide a more appropriate level of protection while preserving members' superannuation balances.
Members are encouraged to assess their individual insurance needs in light of this upcoming change. Those who require higher coverage can opt to increase their income protection cover through AustralianSuper's fixed cover options. Conversely, members who find the default cover sufficient or unnecessary can choose to maintain or cancel their cover accordingly.
It's crucial for members to understand that insurance premiums are deducted from their superannuation accounts, impacting the overall retirement savings. Therefore, aligning insurance coverage with personal circumstances and income levels is essential to ensure both adequate protection and optimal retirement outcomes.
AustralianSuper has communicated these changes to its members, providing detailed information and guidance on how to adjust their insurance cover if needed. Members are advised to review their current cover and make any necessary adjustments before the changes take effect on 28 February 2026.
For more information, members can refer to the official communication from AustralianSuper or contact the fund directly to discuss their insurance options and ensure their coverage aligns with their individual needs and financial goals.
