HESTA strengthens disability cover

HESTA's death and disability income insurance now offers shorter waiting periods for disability income insurance and death cover to a maximum of $2 million. The new arrangements complement HESTA's existing insurance package that already provides up to twice the cover per dollar of premium than similar products, according to Rainmaker Information.

Waiting periods of 30 and 60-days will be available as additional options to the standard 90-day waiting period for disability income insurance, while the maximum $2 million death cover now applies to age 70.

"Because self-employed people can't rely on someone else to pay sick leave for them, its vital that they have replacement income as soon as possible should they be injured and unable to work. HESTA's new 30 and 60 day qualifying periods will help to meet this need," said HESTA Business Development Manager, Ann Drohan.

She adds that offering $2 million death cover to age 70 also recognises that some individuals need higher cover later in life and that often health professionals don't reach their highest earning capacity until they are over 35.

"The new options mean HESTA's insurance is now even better than before and offers options to suit the diversity of our membership across the health and community services sector.

"For example, the annual premium for $1,020,000 death cover for a 45-year old HESTA member is $873.60. The same cover with a typical super fund would cost $1,338.20. Savings such as these are made possible by the purchase of group life insurance through HESTA's size and bulk buying power - over 470,000 members and $3.4 billion in assets - and because the fund doesn't pay agents commissions," she said.