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

Comprehensive Changes to Enhance Affordability and Accessibility for Members

HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

HESTA, a prominent Australian superannuation fund, has unveiled a series of changes aimed at making insurance cover more accessible and affordable for its members.
Effective from 1 July 2026, these changes include an average 12% reduction in insurance fees across all cover types.

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.

Published:Monday, 11th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Grace Period:
A set amount of time after the premium is due during which a policyholder can make a payment without the insurance coverage lapsing.