Life insurance that meets lifestyle? Equip Super seeks change

Older couple looking at life insurance documents

Longstanding superannuation fund Equip Super will change how it manages life insurance from 1 October, 2020.

Equip chief member officer, Tania Cumming said the changes will focus on increased flexibility and member input.

“In reviewing insurance products and talking to our members, they were clear that they wanted insurance that responded to their lifestyle needs. And critically, they wanted us to deliver these options to them rather than them having to construct it themselves,” Cumming said.

While some members will see their life insurance premiums increase, Cumming said the changes are designed to meet long-term needs.

“Key to getting this right is working to ensure that our insurance products align to members’ lifestyles and financial aspirations as well as offering long-term value, rather than short-term changes. It is important that we take a balanced approach that is both affordable and sustainable.”

How does life insurance via super work?

Life insurance provided through super funds is traditionally not a tailored product compared to standalone policies. The details of life insurance are set out when someone signs up and are managed without direct consultation.

The service is generally much cheaper than taking out a tailored policy, but it usually does come with a small fee which is taken out of the super balance. The main issue with these kinds of life insurance policies is that they only offer a limited level of cover which isn’t necessarily tailored to suit specific circumstances or life stages.

The future of super fund life insurance

The impacts of the pandemic have made Australians more aware of how life insurance and superannuation can affect their long-term financial stability. 

This is why Equip is shaking things up with a more customised approach, according to Cumming.

“The financial uncertainty arising from COVID-19 and its impact on many super balances can only increase demand for flexibility and products that reflect members’ current situation as well as their longer-term goals,” she said.

“I believe a more flexible, personalised approach to super life insurance will become a growing trend.”

If you’re in a situation which requires more flexibility right now, look into some of the life insurance offerings below.

Compare standalone life insurance policies - rates updated daily

Search promoted life insurances below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
  • Mozo Experts Choice 2024
    Life Insurance

    Life Insurance – Mozo Experts Choice Award Life Insurance Company of the Year for 6 years running*! Help protect your loved ones with award-winning Life Insurance from NobleOak. Get peace of mind with fully underwritten cover – don’t settle for anything less. General advice only, see website for T&Cs, PDS and TMD.

  • Mozo Experts Choice 2024
    Premium Life Direct Income Protection Insurance

    Income Protection – Mozo 2024 Exceptional Value Income Protection winner* Financial protection for you and your family if you suffer a sickness or injury and are unable to work. Premiums are generally tax-deductible, speak to your accountant to see if this applies to you. General advice only, see website for T&Cs, PDS and TMD.

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Life Insurance Awards