A national study has revealed that a majority of Australian consumers have only a vague idea of the level of life insurance cover included in their superannuation.
The study, commissioned by insurer iSelect and conducted by Galaxy Research, found many Aussie workers did not understand the level of life insurance included in their super policy and were not confident it would meet their family’s requirements in a time of need.
Just over 50 per cent of those with life insurance either had ‘a vague idea’ (36 per cent) or ‘no idea’ (18 per cent) of the level of cover provided by any life insurance included in their superannuation, the study found.
Of those who only have life insurance within their super, 43 per cent were confident it would provide them with sufficient cover in the event of serious illness, disability or death.
iSelect spokesperson Laura Crowden said it was concerning that many Australian workers were not taking the time to learn more or discuss their options.
“Talking about you or a loved one passing away or falling ill is a difficult topic to broach and for that reason many people tend to avoid discussing what impact it would have on their family’s or their own financial security,” Ms Crowden said.
Minister for Revenue Financial Services Kelly O’Dwyer said earlier this month that there was plenty of confusion among consumers about how insurance provided through super works.