Evening Insurance Update: CareSuper 2026 Changes Explained

CareSuper Insurance Overhaul

CareSuper is overhauling its insurance products embedded in superannuation accounts, with changes taking effect on 1 April 2026 after a review highlighted escalating claims costs and the need for sustainable pricing.

The fund has held fees steady for three years but now raises them generally, citing greater member reliance on cover amid life's uncertainties. Legacy cover transitions to Category C with unisex (blended) pricing, eliminating gender-based differences.

Impacts vary by category. Default Death and TPD amounts shift, with potential increases for younger members but reductions or eliminations for older ones—for instance, TPD cover may end at 65-69 unless converted, and Death cover ceases at 70. Income protection aligns with the Superannuation Guarantee reaching 12%, boosting default percentages to 87% of salary (including super) for those under 55, though with a $30,000 monthly application cap.

Some changes benefit members: certain categories remove the 50% reduction on claims in the first 12 months, extend terminal illness eligibility to 24 months, and add life event triggers at milestone ages. Yet higher fees and new exclusions create trade-offs, particularly for those on default cover who may not actively manage it.

The core stakes involve super erosion—premiums deduct directly from balances, compounding over time—and protection gaps if cover lapses or reduces unexpectedly. With the deadline looming, members face a narrow window to reassess needs against rising costs.