Superannuation fund members should not be forced to take out life insurance but should be offered cover against death, accidents and illness on an optional basis, listed wealth manager ClearView says.

In a submission to a parliamentary joint committee inquiry into the life insurance sector, ClearView argues that offering life insurance as an optional extra would reduce the number of Australians who believe mistakenly that they are adequately insured by encouraging consumers to understand what they are covered for. Offering insurance on an "opt-in" basis also would reduce Australia's under-insurance problem, ClearView argued.