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HESTA Announces Significant Reduction in Insurance Fees and Enhanced Member Protections

Upcoming Changes to Benefit HESTA Members from July 2026

HESTA Announces Significant Reduction in Insurance Fees and Enhanced Member Protections?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

HESTA, a leading superannuation fund for health and community services professionals, has announced a comprehensive overhaul of its insurance offerings, set to take effect from 1 July 2026.
This initiative includes an average 12% reduction in insurance fees across all cover types, aiming to provide more accessible and affordable insurance for its members.

Under the new structure, members will experience average fee decreases of approximately 6% for death cover and nearly 15% for total and permanent disablement (TPD) cover. Income protection cover will see reductions ranging from 1.4% to 23.5%, depending on the benefit period selected. These adjustments are designed to ensure that more funds remain invested in members' superannuation accounts, enhancing their long-term financial security.

In addition to fee reductions, HESTA is implementing several member-centric enhancements. Notably, the fund is removing the automatic exclusion of disabilities related to normal pregnancy, childbirth, or miscarriage from income protection claims in specified circumstances. This change addresses a common industry exclusion and reflects HESTA's commitment to supporting members during significant life events.

Further improvements include an enhanced insurance fee waiver during parental leave and a streamlined process for members to apply for increased insurance cover. From July, members will be able to apply for additional death and income protection cover at any time by completing a short personal health statement, simplifying the application process and providing greater flexibility.

These changes build upon previous enhancements made in partnership with AIA Australia to improve the digital insurance claims experience for HESTA members. By focusing on affordability, accessibility, and member support, HESTA continues to demonstrate its dedication to meeting the evolving needs of healthcare professionals.

For more detailed information about these upcoming changes, members are encouraged to visit the HESTA website or contact their member services team directly.

Published:Wednesday, 13th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Beneficiary:
The person or entity designated to receive the death benefit from a life insurance policy.