The $26 billion industry fund AustralianSuper has boosted the insurance levels for its corporate fund, Finsuper, offering automatic acceptance limits (AAL) of up to $800,000.
Members of Finsuper will receive the boosted AALs for death and total and permanent disability cover.
AALs for income protection will also be available for up to 20 units or $10,000 per month to a maximum of 85 per cent of salary.
Already 350 members have taken up the offer in the first 10 days of operation.
The revamped insurance offer is part of AustralianSuper's bid to ensure Finsuper competes with other corporate funds in the financial service sector.
"Finsuper, as the industry fund for the finance industry, will now be able to compete with many of the corporate offerings of the big banks and insurers," AustralianSuper general manager Paul Schroder said.
Finsuper is part of AustralianSuper's corporate division. The fund became part of AustralianSuper following a series of mergers.
Finsuper merged with Superannuation Trust of Australia (STA) in October 2005. In May 2006, STA merged with the Australian Retirement Fund (ARF) to become AustralianSuper.
Being part of a bigger fund meant Finsuper members could now benefit from better insurance by leveraging the buying power that came from large funds, Schroder said.
At this stage, AustralianSuper has no plans to extend the offering to its other corporate funds, but Schroder said the fund was considering the possibility.
"What we aim to do is ensure that industry funds that join AustralianSuper will benefit through our ability to use our bargaining power to deliver benefits that only a big fund can do," he said.
