Experts say too many Australians have insurance spread across multiple super accounts.

The Insurance in Superannuation Working Group (ISWG) says the overload of insurance in super could lead to the “rapid erosion” of retirement money.

ISWG chair Jim Minto says having insurance within in super can be valuable, but still many younger Australians are paying for coverage they do not need.

“It's great that it's there, but younger people in society have more than one superannuation account and so you can have life insurance in each account when you don't need that much life insurance,” Mr Minto told the ABC.

“If you've got too many policies, it will erode the balance too much. It's got to be enough [insurance] but not too much.”


Mr Minto said consolidating super policies would help avoid over-insurance, but acknowledged there is a knowledge gaps that means many are unaware the insurance cover even exists.

His full interview is accessible here.