Insurance premiums can be deducted from members’ accounts by providers of the new default MySuper superannuation option that will be available from next July, according to the Australian Prudential Regulation Authority (APRA).

APRA has published a paper identifying considerable flexibility and member choice for such insurance, which generally includes life and total and permanent disability cover.

Not only is the insurance provider allowed to vary premium deductions with the age and occupation of the member, premium deductions may also “reflect the member’s choice of coverage”, the APRA paper says.

MySuper will also reduce paperwork by enabling a single super account to cover both MySuper and other accounts into which the super member has opted. Such accounts can incorporate defined benefit and defined contribution funds.

The four-year transition that will accompany the introduction of MySuper is designed in part to allow sufficient time for the transfer of complex insurance arrangements.