Reforms allowing easier opt-out from life cover sold with superannuation are welcome, but education is needed to ensure consumers do not act to their own disadvantage, Maurice Blackburn Principal Kim Shaw says.

Measures announced by the Federal Government earlier this month would preserve default insurance as a safety net while giving consumers a greater say on their options, she says.

But consumers may overlook the impact on their life cover when they consolidate various super accounts, and education around the reforms and necessity of life insurance more broadly is required.

“Consumers are often encouraged that consolidation of their super accounts is automatically the best way forward when that may not always be the case, because in many instances consolidation of super can erode balances and benefits and risks leaving consumers worse off,” Ms Shaw said.

“Greater education is also important in ensuring young people are properly informed about their super and life insurance options.”