As superannuation does not part of your Estate, you need to record a binding nomination on your super scheme. There are two types of binding nominations namely Non-Lapsing Binding Nominations or binding nominations which may have to be renewed every three years.
Binding nominations can only be made to dependent beneficiaries (such as your spouse, children or other financial dependents) or to your estate.
Any insurance owned via your superannuation scheme will be effectively be covered by the binding nomination on your super. The insurance proceeds will be paid to your superannuation fund and then distributed according to your nomination. It is important to understand there can be significant tax consequences if insurance proceeds within super are received by non-dependent beneficiaries.
If you do not have a binding nomination recorded on your superannuation, the Trustee of the super fund will determine who receives your account balance and any insurance proceeds if applicable.