Nearly half of Australians aged under 50 have admitted they have little or no understanding of the insurance cover provided by their superannuation fund, according to the Association of Superannuation Funds of Australia (ASFA).
The survey asked respondents to rate their understanding of the insurance options available through their super fund. One in five Generation Y participants (those aged 32 and below) said they had no understanding of insurance inside super, and a further 28% confessed they had a poor or very poor understanding.
The results also demonstrated a poor understanding amongst Generation X Australians (those aged between 33 and 47), with just 10% saying they had a very good understanding of their cover, and 44% admitting to having little or no knowledge about insurance inside super.
Despite this, around half of both Gen X and Y said they knew how to change or choose insurance options within their super fund.
ASFA CEO, Pauline Vamos, said it was concerning that thousands of Australians may not have the best cover for their personal circumstances.
“Insurance provided through super plays an important role in helping to protect people from the financial shocks of unexpected events. However, many people remain in the dark about what type of cover they have and whether it’s a good fit for themselves and their family,” Ms Vamos said.
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Published in Riskinfo.