Industry fund Care Super will now offer members cover that is specific to their needs, moving way from its current broad-based insurance arrangements.
Members under the age of 30 will get one unit of death cover and four units of total and permanent disability (TPD) cover. The level death TPD cover, however, will double for members who are over 30.
"This new insurance cover was implemented in recognition that most people are underinsured and rarely get around to assessing their insurance needs, let alone actually implementing appropriate cover," Care Super chief executive Julie Lander said.
"While members are less likely to die in their twenties, or have dependants, we wanted to ensure that they would be well covered if they suffered an accident or illness, rendering them totally and permanently disabled."
Members will also have the option of increasing their death and TPD cover to 10 times their salary, capped at $1.5 million, and take out income protection that reflects their salary level.
"While it is difficult to provide exactly the right cover for individual members, we are confident that we have addressed the major issues of our membership, allowing for both over and underinsurance and providing the flexibility for members to tailor their cover," Lander said.
The insurance arrangements were developed in partnership with the fund's broker, Industry Fund Services Insurance Broking, and its existing insurer, CommInsure.
