HESTA reduces insurance fees and strengthens protection for members
HESTA
7 May 2026
HESTA today announced an average 12% drop in insurance fees across all cover types1 will take effect later this year as part of a broader suite of changes designed to provide more accessible and affordable insurance cover.
From 1 July 2026, HESTA members2 will pay less for the same level of death, total and permanent disablement (TPD) and income protection cover, and benefit from strengthened protection during pregnancy. The Fund has also improved the insurance fee waiver during parental leave, and made it faster and easier for members to apply for insurance cover.
The changes mean insured HESTA members will see average fee decreases of around 6% for death cover and nearly 15% for TPD, with income protection average reductions ranging from 1.4% to 23.5% depending on benefit period,3 which can mean more money stays invested in members’ super.
More than 630,000 HESTA members have insurance cover through their super. Over 80% of these insured members have standard default cover.4
HESTA CEO Debby Blakey said the changes, which follow HESTA’s renewal of its long-standing insurance partnership with AIA Australia, reflect the Fund’s commitment to providing members with value-for-money insurance.
“Being able to keep insurance costs down and enhance protections is a fantastic outcome for our members who are feeling the impact of higher cost-of-living pressures,” Ms Blakey said.
“Around 80% of HESTA members are women, many working in health and community services, dedicating themselves to looking after others. Providing access to appropriate, affordable insurance cover is a critical offering that can give our members and their families real peace of mind at a time when it matters most.”
As well as reduced insurance fees, the July changes mean HESTA members on parental leave will be able to maintain their cover without paying insurance fees for a full 12 months, with this extending to 24 months for a member whose baby is born prematurely.
The Fund is also removing the automatic exclusion of disabilities related to normal pregnancy or childbirth or miscarriage, from income protection claims in specified circumstances. This is currently a common industry exclusion.
The July changes build on the November 2025 uplifts made in partnership with AIA Australia to improve the digital insurance claims experience for HESTA members.
“For many of our members, the cover they have within their super is likely to be the only personal insurance they hold, which makes getting our insurance offering right all the more important,” Ms Blakey said.
“These changes reflect our ongoing commitment to provide insurance cover that is affordable, accessible, and that genuinely works for members when they need it most.”
Members will receive communication about the changes later this month, with the updated PDS and Insurance options guide available on the HESTA website from 1 July 2026 at hesta.com.au/pds
Key insurance and other changes taking effect from 1 July 2026# include:
- Reduced insurance fees: all insured HESTA members will get an insurance fee reduction for death, total and permanent disablement and income protection cover. The fee reduction amount will vary for each member and depend on a range of factors.5
- Extended parental leave insurance waiver: while on parental leave, insurance cover can continue without fees for a full 12 months. For premature births (before 37 weeks) this will be extended to 24 months.
- Pregnancy-related disability changes: the automatic exclusion from income protection claims of disabilities related to normal pregnancy or childbirth, or miscarriage, will no longer apply in specified circumstances.
- Non-lapsing binding death benefit nominations: HESTA members will be able to make non-lapsing binding death benefit nominations from 1 July 2026.
- The minimum new events cover timeframe is reducing: new events cover will generally apply until 10 consecutive days of active employment, down from 30 days.
- Easier to apply for cover: members will be able to 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.
# Insurance changes are only applicable to HESTA Super and HESTA Personal Super members.
1 Average reduction in HESTA insurance fees across all cover types, effective 1 July 2026. The fee reduction amount will vary for each member and will depend on a range of factors including, but not limited to, the type and amount of cover, age and benefit period. More information about how insurance fees are calculated can found in the Insurance options guide on the HESTA website.
2 HESTA Super and HESTA Personal Super members. The insurance changes will not apply to HESTA Corporate Super members.
3 Average income protection fee decrease, effective 1 July 2026, with a benefit period of: up to 2 years: 1.40%; up to 5 years: 13%; up to age 60/67: 23.50%.
4 As at 31 March 2026. Default cover consists of two units of income protection cover and two units of death cover. For more information, read the Insurance options guide on the HESTA website.
5 Factors include, but are not limited to, the type and amount of cover, age and benefit period. More information about how insurance fees are calculated can found in the Insurance options guide on the HESTA website.
Ends.
About HESTA
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. An industry fund that's run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and currently manages approximately $102 billion* in assets invested around the world.
The insurance provided through HESTA products is provided by AIA Australia Ltd.
*Information is current as at the date of issue.
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HESTA CEO Debby Blakey
