An Increase in Life Insurance Premiums
Australians are in for higher life insurance premiums. Thierry Bareau of Rice Warner Actuaries told news.com.au that this could have been triggered by the increased number of people who signed up for different super accounts, life insurance included, after the 15% to 20% drop in prices of life insurance quotes in the last 4 to 5 years.
Consequently, annual premiums are expected to be up by 5% in the next 2 years. A typical premium will then cost $265 which in turn will help meet payout demands for the working class. A move of trying to pull alongside retail insurance that is battered by increased claims, said some experts, hence the superannuation insurance price rise.
TAL’s chief executive for life insurance, Jim Minto however, believes the annual premium rise for some funds in the next 3 years will be around 10-15% but those aimed at professionals could be as high as 50%.