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TOWER Bags $600m AustralianSuper Deal

The deal, with an annual premium of $200 million, suggests that AustralianSuper's 1.4 million members would receive higher levels of cover

TOWER has bagged a $600 million insurance deal with AustralianSuper, a super fund – reported Financial Standard.

The deal, with an annual premium of $200 million, suggests that AustralianSuper’s 1.4 million members would receive higher levels of cover.

As per the three-year contract, the fund’s members will get a 31% increase in death and disablement cover for the same cost. They will get a default cover that has a two-year income protection benefit and eligible members will be able to avail cover without any personal statement, medical exam or blood tests.

The waiting periods have been reduced. For example, the waiting period for income protection falls from 90 to 60 days while the waiting period for total and permanent disablement claims will be halved.

Members are expected to save $48 million a year in premiums and those with fixed cover now get a premium cost discount of between 7 to 25%.

Jim Minto, managing director of TOWER Australia, said: It’s not just the product or the price but about giving the right package. The company spent the best part of the past 12 months testing their systems and improving their existing technology to come up with a competitive tender, quoted the newspaper.