Super fund members who are engaged with and knowledgeable about their insurance arrangements report a higher level of financial confidence, research by TAL has revealed.

Among people who were unaware if they had insurance in super, only 18% expressed financial confidence, the insurer’s study of 2000 fund members aged 25 to 65 found.

About 42% of those who knew they had default cover but were unaware of the specifics reported financial confidence, rising to 64% among those aware of their coverage amounts.

The figure was 77% among people who actively engaged with and adjusted their cover from the default amounts.

The study found 74% of members were aware of their insurance status, with 60% relying on insurance in super for financial protection.

“Our research shows that insurance isn’t only valuable for those who claim,” TAL group partnerships GM Dan Taylor said. “When members understand their cover and how it works, it gives them real peace of mind – and super funds are well placed to help them get there.”

More than half of respondents said super funds should take a more proactive role in insurance education; 80% would like to receive insurance-related communication at least once or twice a year.

Younger members were least engaged with their insurance, with 44% indicating they had none. Uninsured women were less likely to seek coverage than men.

TAL says funds should focus on developing targeted communications to encourage greater participation.

“Every member’s circumstances are different,” Mr Taylor said. “The opportunity for funds is to meet members where they are and make it easier for them to get protection that’s right for them.”

See TAL’s research paper here.