Life insurance that meets lifestyle? Equip Super seeks change
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.”
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