Never-ending delays, misplaced paperwork, insensitive customer service - our super funds have today slammed for failing grieving families when paying out their members’ death benefits.

Death benefits include the amount of super left in your account when you die, as well as any life insurance payouts. It’s money that should be passed on to your loved ones immediately.

But a scathing ASIC report has revealed that that’s not happening, with one widow forced to wait more than 500 days for her husband’s benefit.

The damning review of 10 super funds showed less than half of death benefit claims were paid within 3 months, with the slowest of the funds only granting 8 per cent of requests in that time frame.

This review didn’t even include two of Australia’s largest funds, Australian Super and Cbus, both of which are already being sued by the watchdog for excessive delays in paying death benefits.

The Superannuation sector today apologised, but their pledge comes too late for customers like Cathy Clarke, who waited more than a year to receive her entitlements after her brother Craig died.

Australian Super offered compensation for the delay - $28.99 to be split between Craig’s three beneficiaries.