{"id":30636,"date":"2015-08-25T12:05:13","date_gmt":"2015-08-25T02:05:13","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=30636"},"modified":"2015-08-26T07:12:00","modified_gmt":"2015-08-25T21:12:00","slug":"aussies-trusting-insurance-needs-to-super-funds","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/08\/25\/aussies-trusting-insurance-needs-to-super-funds\/","title":{"rendered":"Aussies Trusting Insurance Needs to Super Funds"},"content":{"rendered":"

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.<\/span><\/p>\n

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\"Zurich's<\/a>
Zurich’s Philip Kewin<\/figcaption><\/figure>\n

This is one of the findings from a recent survey conducted by the Financial Planning Association (FPA) and Zurich Financial Services, which highlighted significant opportunities for advisers to assist consumers identify their insurance needs.<\/p>\n

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. The report also showed that these people are almost twice as likely to have retained the default level of cover set by their fund, compared with those who have sought advice.<\/p>\n

\u00a024.2% of respondents said the default cover looked sufficient without needing to do any calculations…<\/h6>\n

When asked why they chose to stick with the default level of insurance coverage, 24.2% of respondents said it \u201clooked sufficient without needing to do any calculations\u201d, 21.1% said they hadn\u2019t 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.<\/span><\/p>\n

\u201cPeople often think that their default level of insurance cover is enough to protect them financially, creating a false sense of security. The risk is obviously that without a personal assessment of needs, people can find themselves in dire straits if something goes wrong, finding out the hard way that they are mis-insured, as their policy does not cover them for the risks they thought they were protected against,\u201d said Philip Kewin<\/strong>, Zurich GM for Retail and Life Investments.<\/p>\n

Other key findings from the survey include:<\/p>\n