AIA has launched a national campaign with superannuation partners Mercer and Commonwealth Superannuation Corporation (CSC) to encourage members to stop their “inactive” super accounts being shut down.

The billboard, radio and online campaign urges members to review their funds and opt-in to maintain their life insurance within super. An information hub will be provided for super members to better understand their cover and determine their insurance needs.

From July 1 automatic life cover will be removed from accounts that have been inactive for at least 16 months. AIA says more than $500 million of life insurance payouts are made from inactive accounts each year.

“We support the intent of the legislation, but it’s simply not the case that all members with an inactive account are without insurance needs,” AIA CEO Damien Mu said.

“Our concern is that a large majority of impacted members won’t be aware of these changes until it’s too late, only discovering they are uninsured at their time of greatest vulnerability after a serious event has occurred.

“We understand that members can sometimes be less engaged with life insurance based on over optimism about their risk, or apathy, which is why default insurance in superannuation is by far the most sustainable system for mass consumer protections, benefitting everyone in society by providing cover to all.”

CSC has called on members to be aware of their insurance, and to act fast.

“While all members should review their insurance benefits on an ongoing basis, those who will lose their default insurance cover as a result of the changes in particular should review their needs,” Mercer Australia CEO Ben Walsh said.