CALI has again renewed its call for life insurers to provide simple advice about their own products to consumers.
The announcement follows last year’s publication of its State of Australia’s Safety Net 2025 Report, which paints a picture of working Australians struggling to stay financially covered, mentally well and confident about their future security.
The industry body says many Australians may not realise that life insurance inside their super could already be working for them and that it is one of the least understood forms of financial protection.
“Only one in three Australians said they understood the life insurance products and benefits they had,” said Christine Cupitt, CEO of CALI.
“Many people may already have life insurance switched on inside their super, giving them access to death and disability cover. But it isn’t a set-and-forget benefit. Occupation, income, family, mortgage and working hours can all change, and the cover needs to keep pace.”
See: Renewed Call on Allowing Insurers to Deliver Simple Advice
In January 2024 she said: “Doing nothing won’t just hurt today. It’ll set in motion a chain reaction over the next 10, 20, and even 30 years as many Australians remain priced-out of getting the right advice to secure their financial future and look after their loved ones.”
…super is already at work financially supporting thousands of Australian workers…
This week, Cupitt said life insurers had supported about 54,000 claims in the past 12 months, with almost $6bn in payments through group superannuation policies.
“The payments show that life insurance through super is already at work financially supporting thousands of Australian workers,” she said.
Cupitt said Australians needed better access to simple, reliable information about the insurance they already had.
“For many Australians, accessing a financial adviser is out of reach,” she said. “But they should be able to get straightforward, professional help to understand the cover they have.”
She added the Federal Government’s Delivering Better Financial Outcomes (DBFO) reforms would help close the advice gap by allowing life insurers to provide simple advice about their own products when customers ask for help.
