A significant change to the superannuation system will be enforced with effect from today that could leave some Australians without life insurance if they were unaware that their superannuation fund had default life insurance included in it.

This is because super accounts that have been inactive for 16 months will have their default life cover switched off with effect from today if the fund member had not indicated that they wished to continue the cover.

A survey, the results of which were released last month by the Association of Superannuation Funds of Australia (ASFA), found that more than half of Australians surveyed (53%) were unaware of the changes to the life insurance cover provided through superannuation. One in four had no idea whether they had life insurance attached to their superannuation fund.

Many Australians have multiple superannuation funds because they opt for the default fund whenever they start a new job. More than 85% of Australians have life insurance included in their fund.

Over the past month in particular, insurers and super funds embarked on a drive to remind fund members to confirm whether they wished to carry on paying premiums for life insurance attached to the funds.

The government changed the law in February as a wider move designed to stop retirement savings in inactive accounts from being drained by fees and premiums.