POWERED BY MOMENTUM MEDIA
Benefits of insurance inside super unknown
Awareness of the default protection of insurance within superannuation is fairly high, but it’s uses, offerings and makeup are concerningly misunderstood and ignored by Australians, MetLife Australia has found.
Two-thirds of Australians did not know how to calculate the amount of life insurance needed, while MetLife also found more than half (55 per cent) feel they do not have enough life insurance and 72 per cent have limited knowledge of what they are covered for.
The survey, which measured the attitude and understanding of 1,500 Australians between 18-64 on superannuation was undertaken by MetLife as part of its national awareness campaign on default insurance.
A total of 61 per cent did not know insurance inside super was bulk purchased and therefore often cheaper than retail policies, while 56 per cent of respondents were unaware of potential tax benefits, and four in 10 did not know they were able to modify their cover.
“It’s concerning that more people are taking action,” said MetLife Australia chief executive officer, Deanne Stewart.
“We really need to focus on engagement, ensuring more working Australians are making the most of their insurance inside super.”
Stewart said industry professionals had a key role to play in raising life insurance awareness and should assist people to ensure they had adequate insurance protection.
“It’s all about clear, simple and practical solutions to help people take action,” she said.
MetLife also found 69 per cent of Australians had never changed their default level of cover.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
I wonder if there is a group of professionals that could specialise in helping people understand this stuff, and with their overall financial position and personal insurance needs? Anyone know anyone?