Super objective to recognise life insurance

Yasmine Raso

Senior Journalist, Financial Newswire

26 April 2023

Australian life insurer, MLC Life Insurance, has called for Treasury’s proposed legislation of the objective of superannuation to acknowledge the “integral role” of life insurance in super.

In its submission to the consultation paper, MLC Life complemented the submission made by the Council of Australian Life Insurers (CALI) and highlighted several areas of focus for the Federal Government to legislate the objective.

“Insurance through default superannuation cover will continue to grow in importance as the way in which most Australians access life insurance,” Kent Griffin, Chief Executive Officer of MLC Life Insurance, said.

“The group insurance system plays an essential role in the ongoing importance of Australia’s world-class superannuation system, providing a crucial safety net for working Australians.

“As the government seeks to define the objective of superannuation, recognising the role of insurance in super is absolutely critical.

“Insuring the lives and livelihoods of Australians through group insurance is of the utmost focus for MLC Life Insurance, and advocating for the sustainability of that insurance through industry and retail funds including master trusts is an important element of that focus.”

Griffin also said it is important to enshrine the key partnerships made between superannuation providers and life insurers to ensure suitable cover protects members’ wealth in the case of unforeseen events.

“Put simply, public policy must balance protection and wealth, and without adequate insurance through super, Australian families are left facing an event that would otherwise be covered and will see that wealth creation and a dignified retirement put at risk,” he said.