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Upsurge in life insurance through super

Australians are increasingly putting life insurance into their superannuation as the global recession eats away at investment earnings.

According to data from Aviva Australia, lump sum protection policies linked to the Aviva platform represented 14.8% of new business in the past year, up from 3% in 2007.

National Distribution Development Manager Russell Hannah says this is a significant increase in two years and he anticipates the trend will continue.

“Clients have become savvier about how they stay protected in times of economic uncertainty,” he said. “This allows clients to stay protected while maximising their tax efficiencies and the impact of premiums on their disposable income.”