Australian workers are increasingly concerned about their financial security, yet many may not realise that life insurance inside their super could already be working in the background to protect them and the people they love.
The latest CALI Life Insurance Sentiment Tracker found two in five Australians feel uncertain about their financial situation over the coming year.
Council of Australian Life Insurers (CALI) CEO Christine Cupitt said insurance through superannuation was one of the most accessible, yet least understood, forms of financial protection.
“Many people may already have life insurance switched on inside their super, giving them access to death and disability cover,” Ms Cupitt said.
“This protection may be quietly working in the background, but it isn’t a set-and-forget benefit. Your job, income, family, mortgage and working hours can all change, and your cover needs to keep pace.”
Only one in three Australians said they understood the life insurance products and benefits they had, despite superannuation remaining one of the most common ways working Australians protect their future.
Ms Cupitt said financial pressures could also lead some Australians to rethink their cover without fully appreciating what they could be missing out on.
“People are dealing with a lot. Budgets are stretched, living costs are increasing and that could get worse if you are forced out of your income through illness or injury,” she said.
“That’s why we encourage people to regularly check in with their insurance cover rather than wait until their life gets turned upside down to find out what they do or don’t have.”
In the past 12 months, life insurers supported about 54,000 claims for Australians and their families with almost $6 billion in payments through group superannuation policies.
Ms Cupitt said the payments showed that life insurance through super was already at work financially supporting thousands of Australian workers and their families facing illness, injury, disability, or death.
“Almost $6 billion in payments in 12 months shows this protection is not a minor consideration. It is an important part of Australia’s financial safety net.”
Ms Cupitt said Australians also needed better access to simple, reliable information about the insurance they already had.
“For many Australians, accessing a financial adviser is out of reach. But they should be able to get straightforward, professional help to understand the cover they have,” she said. CALI believes the Federal Government’s Delivering Better Financial Outcomes reforms would help close Australia’s advice gap by allowing life insurers to provide simple advice about their own products when customers ask for help.