Binding Beneficiary Nomination:

• What it is: A formal, written instruction you give to your super fund about who should receive your life insurance benefit if you pass away.

• Key feature: It's legally binding, meaning the super fund must follow your nomination as long as it's valid.

• Validity: Typically valid for three years, after which you'll need to renew it.

• Who you can nominate: Usually limited to your dependents (e.g., spouse, children) or your legal personal representative (executor of your will).

Non-Binding Beneficiary Nomination:

• What it is: A suggestion or preference you provide to your super fund regarding who you'd like to receive your life insurance benefit.

• Key feature: It's not legally binding. Your super fund will consider your wishes but has the discretion to make the final decision.

• Factors considered: The fund will assess who is financially dependent on you or has an interdependency relationship with you.

• When it's used: Often simpler to set up than a binding nomination and may be suitable if you don't have complex circumstances or strong preferences.