Meet Lauren (19 years old)
Before 1 October 2017
Lauren is a 19 year old student with default insurance providing $131,500 cover for Death and TPD. She is currently paying premiums of $166.40 per year ($3.20 x 52).
After 1 October 2017
From October 1, Lauren’s Death and TPD cover has reduced to $50,000. The annual premium will also reduce to $61.88 (Weekly premium for a member aged 20 next birthday $1.19 x 52 = $61.88).
Her new level of Death cover will eventually increase to $131,500 by age 35 when a higher level of death cover may be more relevant, however her TPD cover will remain at $50,000 until she reaches age 39, after which time it will begin to decrease over time.