Income Protection NZ :: News
SHARE

Share this news item!

HESTA Announces Significant Reduction in Insurance Fees and Enhanced Member Protections

Upcoming Changes to Benefit HESTA Members from July 2026

HESTA Announces Significant Reduction in Insurance Fees and Enhanced Member Protections?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

HESTA, a leading superannuation fund for health and community services professionals, has announced a comprehensive overhaul of its insurance offerings, set to take effect from 1 July 2026.
This initiative includes an average 12% reduction in insurance fees across all cover types, aiming to provide more accessible and affordable insurance for its members.

Under the new structure, members will experience average fee decreases of approximately 6% for death cover and nearly 15% for total and permanent disablement (TPD) cover. Income protection cover will see reductions ranging from 1.4% to 23.5%, depending on the benefit period selected. These adjustments are designed to ensure that more funds remain invested in members' superannuation accounts, enhancing their long-term financial security.

In addition to fee reductions, HESTA is implementing several member-centric enhancements. Notably, the fund is removing the automatic exclusion of disabilities related to normal pregnancy, childbirth, or miscarriage from income protection claims in specified circumstances. This change addresses a common industry exclusion and reflects HESTA's commitment to supporting members during significant life events.

Further improvements include an enhanced insurance fee waiver during parental leave and a streamlined process for members to apply for increased insurance cover. From July, members will be able to apply for additional death and income protection cover at any time by completing a short personal health statement, simplifying the application process and providing greater flexibility.

These changes build upon previous enhancements made in partnership with AIA Australia to improve the digital insurance claims experience for HESTA members. By focusing on affordability, accessibility, and member support, HESTA continues to demonstrate its dedication to meeting the evolving needs of healthcare professionals.

For more detailed information about these upcoming changes, members are encouraged to visit the HESTA website or contact their member services team directly.

Published:Wednesday, 13th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

NTI Updates Transport Pack to Support Transport Industry Amid Challenges
NTI Updates Transport Pack to Support Transport Industry Amid Challenges
17 May 2026: Paige Estritori
National Transport Insurance (NTI), Australia's leading truck insurer, has recently refreshed its Transport Pack to better support the transport industry during a period marked by significant challenges. With nearly five decades of industry experience, NTI is leveraging its extensive data to offer solutions tailored to the current needs of transport operators. - read more
Australian Motor Fleets Embrace Telematics to Boost Safety and Control Costs
Australian Motor Fleets Embrace Telematics to Boost Safety and Control Costs
17 May 2026: Paige Estritori
In response to escalating insurance premiums and stringent safety regulations, Australian motor fleet operators are increasingly turning to telematics technology. This shift is particularly evident in sectors with high operational risks and compliance requirements, such as the resources industry. - read more
IAG's Strategic Response to Softening Commercial Insurance Market
IAG's Strategic Response to Softening Commercial Insurance Market
17 May 2026: Paige Estritori
Insurance Australia Group (IAG) is proactively addressing the challenges posed by the current soft commercial insurance market through its Intermediated Insurance Australia (IIA) division. CEO Jarrod Hill has expressed confidence in the division's ability to navigate these conditions, citing a well-balanced business portfolio and strategic operational adjustments. - read more
Tasmania's Collaborative Strategy to Enhance Insurance Affordability
Tasmania's Collaborative Strategy to Enhance Insurance Affordability
17 May 2026: Paige Estritori
The Tasmanian Government has announced a significant shift in its strategy to address insurance affordability and availability within the state. Premier Jeremy Rockliff revealed plans to collaborate with insurers, brokers, and reinsurers to develop solutions that effectively tackle these issues. - read more
Federal Budget 2026: Initiatives to Enhance Insurance Affordability
Federal Budget 2026: Initiatives to Enhance Insurance Affordability
17 May 2026: Paige Estritori
The Australian Government's 2026 federal budget has earmarked $3.4 million over four years to develop measures aimed at reducing property insurance costs and addressing the issue of unintentional underinsurance. This initiative reflects a growing recognition of the financial pressures faced by homeowners and businesses due to escalating insurance premiums. - read more
South Australia Implements Heavy Vehicle Reforms to Address Fuel Crisis
South Australia Implements Heavy Vehicle Reforms to Address Fuel Crisis
16 May 2026: Paige Estritori
In response to escalating fuel prices, the South Australian government has expedited reforms to heavy vehicle regulations, now permitting longer and heavier trucks on the state's roads. This initiative aims to alleviate the financial strain on the trucking industry by enhancing fuel efficiency and reducing operational costs. - read more


Life Insurance Articles


Start Here !
income insurance protection

Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase
Insurance Claim:
Notification to an insurance company requesting payment of an amount due under the terms of the policy.