Taking issue with insurance within super - how it's not working as well as it might

Choice consumer watchdog has spoken out in a submission to the Productivity Commission against default insurance options within superannuation, saying it is poorly targeted and not meeting the needs of consumers. 

The concerns raised include questioning the assumption that consumers are under-insured, and default cover is meant to cover people appropriately. Many consumers are paying for cover they don't know they have, or don't need if other arrangements are in place. 

The submission includes queries regarding, for example, why can't someone hold total and permanent disability cover without also paying for death insurance, and why does a young person have default death cover when they have no dependants? More broadly, Choice has questioned by consumers with multiple accounts are paying multiple premiums, eroding funds further.

Rice Warner's submission asks why income protection cover should be provided within superannuation since it's expensive and only applicable to those who are working. Anyone off work is potentially not covered. 

There were 69 post-draft submissions regarding superannuation competitiveness and efficiency. The Productivity Commission is to hand its report to the government in November.