The Productivity Commission has excluded group life insurance from its draft report on superannuation fund models, saying it is not an essential part of superannuation.
The commission also said there are conflicted interests for trustees when offering life insurance, and has suggested that group life cover be excluded from superannuation funds. There doesn't seem to be a clear purpose of having life insurance within superannuation, with nobody saying at any stage that our superannuation system is intrinsically tied up with insurance. There is no stated objective from above that deems it essential to the system.
The commission is looking at allocating members to default superannuation products, with the commission report saying that decision-makers are making trade-offs as it is, without adding insurance into the mix.