National Australia Bank and a former employee negligently voided $400,000 in life insurance policies when pushing an ill man to switch superannuation providers to its wealth offshoot MLC shortly before he died, his wife alleges.

Rachel Sneddon – whose husband died in 2020 from a blood clotting issue she alleges NAB and the adviser were aware of – says they received nothing from the new fund after his death. She claims they would not have switched super funds if they knew it would affect their life insurance, and wants the bank to pay damages and interest.