Riskinfo readers were interested this week in a statement released by MLC Life Insurance in which it predicted that default group cover through super will continue to grow in importance as the way in which most Australians access life insurance…
The protection of life insurance is part of the promise of superannuation, according to MLC Life Insurance.
The insurer says it has made the case for group insurance in a submission to the Australian Government’s consultation paper on legislating the objective of superannuation, “…underscoring the need to recognise the integral role of insurance in super.”
Kent Griffin, CEO of MLC Life Insurance, says that insurance through default superannuation cover “…will continue to grow in importance as the way in which most Australians access life insurance.”
He says 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.”
Griffin adds that as the government seeks to define the objective of superannuation, “…recognising the role of insurance in super is absolutely critical.”
He also notes that 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.”
The insurer says that its submission supplements the industry view put forward by the Council of Australian Life Insurers and lays out several key areas of focus (see: Insurance in Super Critical – CALI).
MLC Life says it continues to work closely with its superannuation partners to provide appropriate cover which protects the member’s wealth from being diminished in the face of unforeseen events.
…Put simply, public policy must balance protection and wealth…
“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.”
The company adds that it supports the Australian Government’s efforts to legislate the objective of superannuation and encourages the government to acknowledge the critical role of life insurance as part of that process.
