Group life awareness on the rise: MetLife
Research for MetLife Australia shows superannuation fund members know about life insurance within their funds and levels of default cover.
However, many are unsure how the cover works and what benefits they can claim.
The research by Little Triggers in August featured 12 in-depth interviews and a quantitative survey of 1500 working Australians.
While 74% were aware of life insurance within super, only 54% believed they were covered.
About 72% had limited knowledge of accident and illness cover terms, and half were unaware they could change their level of cover.
While people are encouraged to change coverage levels when buying a home or getting married, they need a prompt from either an adviser or their fund, MetLife says.
When asked what prompted them to modify cover, 29% – the highest proportion of respondents – cited recommendations from their financial adviser. About 20% reviewed their cover after receiving communication from their super fund.
MetLife Australia CEO Deanne Stewart says the industry has worked hard to raise awareness of insurance in super.
“It’s rewarding to see people are taking notice and awareness is on the rise,” she said.
“But at the same time it’s concerning that more people aren’t taking action, despite 55% of those with default cover suspecting they don’t have enough.”
About 73% of respondents had consolidated their super into one account.
“This shows that simple, clear messaging regularly reinforced does work, and is something we need to embrace when it comes to insurance inside super,” Ms Stewart said.
“We need to focus on engagement, ensuring more working Australians are making the most of their insurance inside super. As industry professionals we have a key role to play in supporting people with simple steps to take control of their cover.”