How can we stem the decline of life cover in superannuation?

According to recent research from the Association of Superannuation Funds of Australia (ASFA), there's a sharp drop in the number of Australians insured for death benefits and total and permanent disability (TPD) through superannuation. Good intentions lead to decline Most...

Susan Muldowney — ANZIIF Writer

11 May 2026

3 mins read

How can we stem the decline of life cover in superannuation?

According to recent research from the Association of Superannuation Funds of Australia (ASFA), there’s a sharp drop in the number of Australians insured for death benefits and total and permanent disability (TPD) through superannuation.

Good intentions lead to decline

Most super funds offer life and TPD insurance cover to their members, typically provided on an opt-out basis for members up to a specified age.

Research from the Australian Securities Investment Commission shows that, as of March 2023, approximately 15 million Australians had superannuation accounts, and about 8 million of them had insurance through it.

Almost 71 per cent of those accounts have insurance that is automatically provided by the superannuation trustee.

However, that number was significantly higher prior to legislative changes under the Protecting Your Superannuation Package (PYS) of reforms and the Putting your Members Interest First (PMIF) changes introduced in 2019, which aimed to prevent people paying for something they had not actively signed up for in a fund they were not actively paying into.