Australian Food Super Implements Age-Based Insurance Premium Structure

Previously, manual workers of all ages paid an annual premium of $530.40 for life, total and permanent disability (TPD), and income protection cover. Under the new structure:

• Members aged 33 to 45 will pay $455 annually.
• Those aged 46 to 55 will see premiums increase to $711.80 per year.
• Members aged 56 to 70 will pay $929.24 annually.

For office workers, the annual premium was $475.80 across all ages. The revised premiums are:

• $354.28 for members aged 33 to 45.
• $527.28 for those aged 46 to 55.
• $718.12 for members aged 56 to 70.

These adjustments are based on default cover levels, including two units of life insurance, one unit of TPD, and seven units of income protection. The fund stated that the changes are designed to ensure premiums reflect the likelihood of claims, thereby aligning costs with risks.

In addition to the premium restructuring, Australian Food Super is enhancing its insurance offerings by:

• Reducing the TPD waiting period from six months to three months.
• Increasing the maximum monthly default income protection from $2,500 to $3,500, expanding coverage to a greater salary range.

These changes follow the fund's appointment of TAL as its new insurance partner in September 2024, replacing MetLife. Members are encouraged to review their insurance coverage and consider how these changes may impact their individual circumstances.