Research commissioned by ASFA has found that over 40 per cent of people have a poor understanding of insurance within their super, which it says means “thousands of Australians may not have the best cover for their personal circumstance”.
“Insurance provided through super plays an important role in helping to protect people from the financial shocks of unexpected events,” ASFA chief executive Pauline Vamos said.
“However, many people remain in the dark about what type of cover they have and whether it’s a good fit for themselves and their family.
“This is why it’s so important to take the time to get to know your insurance cover, and ask the right questions to help you make a choice about what type and level of cover is right for you,” Ms Vamos said.
In its research, ASFA found it “most concerning” that one in five Australians under the age of 32 had no understanding of the insurance in their super at all.
“Around 50 per cent [claim] they had no understanding or that their understanding was poor or very poor,” ASFA said.
“Around 40 per cent of survey respondents also said they do not know how to choose or change their level or type of cover, with almost half of all females surveyed unsure of how to do this.”
ASFA argued there is “no substitute for good advice” on insurance inside super but also encouraged consumers to direct questions to their super fund, which will assist them in finding the right cover.
