Members disengaged with insurance inside super
A new report has found that nearly 40 per cent of superannuation fund members who are aware of having insurance inside super were not aware they could modify the level of cover.
According to MetLife’s Insurance Inside Super Report, “communication from a members’ super fund” was found to be the main driver of initial awareness of insurance inside super, with email the preferred method of communication.
But beyond initial awareness, MetLife said the findings also suggest a greater focus is needed on educating members about the importance of modifying their insurance, with 39 per cent of members unaware they could modify the level of cover they had inside super.
Further, 28 per cent of members said they were not aware they are charged a premium for insurance inside super and for those that were aware, only 34 per cent knew the premium amount being charged.
MetLife Australia chief customer and marketing officer Chesne Stafford said misinformation around insurance inside super and the value it provides has been widespread in recent months, particularly as the Protect Your Super Changes comes into force.
She added that while some of the opt-in rates are encouraging, there is still significant work to do.
“With thousands of Australians with inactive and low balance accounts now having their insurance switched off and the potential for more people to be affected, it is more important than ever to increase awareness and get people checking what level of protection they have and need,” Ms Stafford said.
“We know insurance inside super is built-in protection that serves an incredibly important purpose and has been a safety net for many Australians when the unexpected occurs.
“Every day we see examples of people who rely on their insurance inside super to help pick up the pieces after major illness or accident, or bereavement. We need to ensure that protection continues and people aren’t caught unexpectedly without cover.”
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