One in five Australians with life insurance inside super say they have stuck with their default cover option because they trust their super fund or employer to know the correct level of cover for them.
The Life Insurance Literacy Gap report found that the majority of Australians who hold life insurance (52.2%) purchased the cover through their super fund with no assistance from a financial adviser.
When asked why they chose to stick with the default level of insurance coverage, 24.2% of respondents said it “looked sufficient without needing to do any calculations”, 21.1% said they hadn’t gotten around to reviewing their cover, and 12.9% said they trusted that their super fund had chosen the correct level of insurance cover for them.
Other key findings from the survey include:
42.2% of respondents believe that buying life insurance through super is the cheapest way to purchase cover, with or without assistance from an adviser
23.3% of Australians said that if they were to purchase a new life insurance policy or update their existing cover, they would seek advice from a financial planner
27.6% of Australians were unsure about the accessibility of life insurance through super
Too many Australians still believe that financial planners are only for the wealthy, yet nothing could be further from the truth.
We know from the Investment Trends research that regardless of how much money people have, they feel happier and more in control of their financial future if they take the simple step of consulting a financial planner.
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