HESTA Announces Significant Insurance Fee Reductions and Enhanced Member Protections

Members will benefit from reduced fees for death, total and permanent disablement (TPD), and income protection cover. Specifically, the average fee decreases are approximately 6% for death cover and nearly 15% for TPD. Income protection fees will see reductions ranging from 1.4% to 23.5%, depending on the benefit period. These reductions mean that more of members' funds will remain invested in their superannuation accounts, potentially leading to greater retirement savings over time.

In addition to fee reductions, HESTA is removing the automatic exclusion of disabilities related to normal pregnancy, childbirth, or miscarriage from income protection claims in specified circumstances. This change addresses a common industry exclusion and provides stronger support for members during pregnancy. Furthermore, the fund has improved the insurance fee waiver during parental leave and streamlined the application process for insurance cover, making it faster and easier for members to apply.

HESTA's CEO, Debby Blakey, emphasised the importance of these changes, stating that for many members, the insurance cover within their superannuation is likely the only personal insurance they hold. Therefore, ensuring that the insurance offering is affordable, accessible, and effective is crucial. These enhancements reflect HESTA's ongoing commitment to providing insurance cover that genuinely works for members when they need it most.

Members will receive detailed communication about these changes later this month, with updated Product Disclosure Statements (PDS) and Insurance Options Guides available on the HESTA website from 1 July 2026. These documents will provide comprehensive information on the new fee structures and coverage options, enabling members to make informed decisions about their insurance needs.

In summary, HESTA's proactive measures to reduce insurance fees and enhance member protections demonstrate a strong commitment to supporting the financial well-being of its members. By making insurance more affordable and accessible, HESTA is helping Australians achieve greater financial security and peace of mind.