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.