ASIC Warning Highlights Ongoing Delays in Super Death Benefit Claims

The review follows earlier regulatory work into death benefit handling and focuses on whether trustees have acted on known weaknesses. ASIC noted a significant reduction in internal complaints about death benefit delays between early 2024 and late 2025, which suggests some funds are making practical changes. However, the regulator also pointed to rising claim volumes and Australia’s ageing population as clear reasons why trustees need stronger systems now, not later.

For households relying on insurance held inside super, the issue is more than administrative. A death benefit can include the deceased person’s super balance plus any life cover attached to their account. If that money is delayed, partners, children and other dependants may be left managing funeral costs, mortgage commitments, rent, school expenses and everyday bills without the support they expected.

This story also extends a broader theme we have been following: regulators are increasingly focused on whether life insurance and related benefits are being delivered fairly, efficiently and transparently. Recent attention on income protection, TPD and now super-linked death benefits shows that claims performance is becoming just as important as premiums and headline cover amounts.

ASIC has highlighted practical areas for trustees, including clearer end-to-end claim timeframes, better performance targets, more proactive communication and improved support for First Nations members and claimants. It is also examining how trustees use complaints data to identify systemic problems, rather than treating each complaint as an isolated case.

For consumers, the takeaway is to check the details before a claim is ever needed. If you hold life insurance through super, review whether your beneficiary nomination is valid, current and binding where appropriate. Keep your family informed about which fund holds your cover, what documents may be needed, and whether you also have standalone life insurance outside super.

It may also be worth making a broader life insurance comparison to understand whether cover through super is enough for your family’s needs. Super-based cover can be convenient, but it may not always provide the flexibility, ownership structure or benefit level a household requires.

Before changing or cancelling any policy, consider the risks carefully. Families can use tools to estimate the cover your household may need, then compare that figure with current benefits inside and outside super. The best time to identify a gap is while you can still act on it, not when loved ones are already navigating a claim.