HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits

Members will benefit from decreased fees for death, total and permanent disablement (TPD), and income protection cover. Specifically, the average fee reductions are approximately 6% for death cover and nearly 15% for TPD. Income protection fee reductions vary, ranging from 1.4% to 23.5%, depending on the benefit period.

In addition to fee reductions, HESTA is implementing several enhancements to member protections:

• **Extended Parental Leave Insurance Waiver**: Insurance cover can continue without fees for a full 12 months during parental leave. For premature births (before 37 weeks), this waiver extends to 24 months.
• **Pregnancy-Related Disability Changes**: The automatic exclusion from income protection claims of disabilities related to normal pregnancy, childbirth, or miscarriage will no longer apply in specified circumstances.
• **Non-Lapsing Binding Death Benefit Nominations**: Members will have the option to make non-lapsing binding death benefit nominations, providing greater control over their superannuation benefits.
• **Reduced New Events Cover Timeframe**: The period for new events cover will generally apply until 10 consecutive days of active employment, down from 30 days.
• **Simplified Application for Cover**: Members can apply for increased death (up to a total of 6 units) and income protection (up to a total of 12 units) cover at any time by completing a short personal health statement.

These initiatives reflect HESTA's commitment to providing insurance cover that is both affordable and effective, addressing common concerns about high premiums and complex policy terms. By reducing fees and enhancing protections, HESTA aims to offer greater financial security and peace of mind to its members.

Members will receive detailed communication about these changes later this month, with updated Product Disclosure Statements and Insurance Options Guides available on the HESTA website from 1 July 2026.