Paying for junk : Super insurance gets mixed review
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Australians fork out more than $4.1 billion a year from their retirement savings for insurance, according to the corporate regulator, but value for money can be very hit and miss.
And while the total amount paid is down from about $5 billion two years ago, insurers for MySuper accounts are still making an estimated $860 million gross profit to provide coverage to fund members.
The ASIC report found many members were not aware they had super insurance coverage, or that they were paying for it.
An new analysis of 20 MySuper products by the Australian Securities and Investment Commission found about 86 per cent of super members with insurance were on a default setting and may be losing out.
ASIC identifies significant variation in outcomes for superannuation insurance smsfadviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smsfadviser.com Daily Mail and Mail on Sunday newspapers.