To opt in or out of life insurance: Spot poll

There are mixed feelings about whether young superannuation fund members should opt in to life insurance, the latest Financial Standard poll reveals.

Twenty-nine per cent of respondents disagree that young super fund members should have the choice to opt in to life insurance, and 21% strongly disagree.

On the other hand, one-quarter (25%) said they strongly agree with the choice to opt in and move away from automatically receiving life and disability insurance coverage when signing up to a super fund. Another 21% also agreed with this move.

AustralianSuper recently became the first major superannuation fund to give members under 25-years-old the option to sign up to life insurance when joining the fund.

Once members reach 25, they will be automatically placed into the fund's default insurance product, unless they express a desire to opt-out.

AustralianSuper group executive of membership, Rose Kerlin, said the move follows feedback from members stating group insurance premiums were eroding account balances.

The recent life insurance parliamentary inquiry found group insurers were not doing enough to prevent the growing problem of employees owning multiple super funds and life insurance policies.

The new Financial Standard weekly readership survey asks: Are ETFs distorting share prices and leading to bubbles?

Read more: Life insuranceFinancial StandardAustralianSuperRose KerlinOpt-in
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