Despite Australians paying $6.8 billion for insurance within their superannuation funds in 2023-24, new research by Super Consumers Australia, shows that one in four don't know what insurance they have in super. Super Consumers Australia's Pulse survey is based on the responses more than 1500 people aged between 18 and 75-years-old, gathered in May 2024, found that default insurance cover in super has left many Australians paying for insurance they don't know about or don't understand. More than half of 25-to 29-year-olds don't know that default insurance normally starts at age 25, even though they have recently passed this age threshold. The consumer group is calling for a Productivity Commission review of insurance in super, to ensure it is living up to the needs of Australians. Super fund member Lyndal Jordan didn't know she was on a default level of insurance cover when she went to make a claim after getting terminal cancer. She says her superannuation fund, Aware Super, should have provided clearer communication about her level of insurance and should have handled her claim more efficiently. Aware Super, which has $180 billion in funds under management, has apologised for the difficulty Ms Jordon has faced in the processing of her claim, but argues she was paid what was required under a default level of cover.
