The study, commissioned by insurer iSelect and conducted by Galaxy Research, found many Aussie workers did not understand the level of life insurance included in their super policy and were not confident it would meet their family’s requirements in a time of need.
Just over 50 per cent of those with life insurance either had ‘a vague idea’ (36 per cent) or ‘no idea’ (18 per cent) of the level of cover provided by any life insurance included in their superannuation, the study found.
Of those who only have life insurance within their super, 43 per cent were confident it would provide them with sufficient cover in the event of serious illness, disability or death.
iSelect spokesperson Laura Crowden said it was concerning that many Australian workers were not taking the time to learn more or discuss their options.
“Talking about you or a loved one passing away or falling ill is a difficult topic to broach and for that reason many people tend to avoid discussing what impact it would have on their family’s or their own financial security,” Ms Crowden said.
Minister for Revenue Financial Services Kelly O’Dwyer said earlier this month that there was plenty of confusion among consumers about how insurance provided through super works.
I have been training new advisers recently. These are qualified financial planners, and it takes them months to start getting their heads around the complexities of all of the insurance options, terms and conditions, payments and definitions, underwriting, group vs direct vs advised etc. If these are people who want to learn about this stuff and it is this complex, how does anyone expect consumers to understand. Time for the Australian Government to protect Australians and the Economy by encouraging people to get advice, don’t you think?