Important changes to your staff’s Vision Super insurance
Our focus is making sure our members retire comfortably, which is why we aim to keep fees and costs as low as possible. Our members haven’t seen an increase in their insurance premiums since 2015, however, in the last few years, many factors have contributed to insurance premiums rising across the superannuation industry.
MLC Life (who provide insurance for Vision Super members) identified that a premium increase was necessary to cover the cost of providing insurance to our members. As such, the new premiums, which are guaranteed for two years, took effect on 1 January 2021. As part of this change the definitions of Total and permanent disability and Income Protection have been updated so they are more relevant to capacity for work.
Jessica is 30 years old and has three units of death and total and permanent disablement cover, which for a 30-year-old is $262,500 of cover. Before 1 January 2021 she paid $4.29 a week for her cover, from 1 January 2021 she will pay $4.98.
If Jessica had fixed her cover for death and total and permanent disablement of $250,000, before 1 January 2021 she paid $0.86 per year per $1,000 of cover, which was an annual premium of $215.00. After 1 January 2021, she will pay $247.50.
If your staff understands the premium change, it will allow them to adjust their contributions, if they want to maintain the same retirement. If they’re not sure how much they need we have staff who can help them or feel free to direct them towards Vision Super’s insurance calculators available at www.visonsuper.com.au/super/calculators
Your staff are not obligated to keep their insurance through their super, but there are many advantages of doing so, which you can read about here: www.visionsuper.com.au/insure. If your staff need to review their current level of cover, they can do so by logging into their online accounts, calling, or emailing Vision Super.
Of course, they’re not expected to know how much they will need if the unthinkable happens. Vision Super also provides advice on a single topic such as insurance cover and can normally be provided at no cost to our members.
We’re here to help
If there is anything we can do for you or your employees, or you have questions about insurance, you can email us at [email protected] or call us on 1300 300 820 between 8.30am and 5pm Monday to Friday.