Life in Super
August 2, 2018
The Lab recently undertook a project with life insurer AIA to delve into people’s understanding of Life Insurance in Superannuation.
The project involved a set of triads (small focus groups) with young people between 18 and 35, with different levels of financial responsibility: some having very few, and others having more due to recently buying a home, getting married, or starting a family.
Image Source: Unsplash
Our research unveiled some interesting (and at times concerning) truths about the level of financial literacy of young Australians and their understanding of Life in Super, notably:
• Only about 30% of Australians are aware they have life insurance in superannuation, which leads to a situation where some may be underinsured, and others may have cover they don’t necessarily need.
• Most see the inclusion of Life insurance in Super as a positive when made aware of it.
• Young Australians said they needed to be “shocked” with specific scenarios and examples of where life insurance claims could be relevant to them to make them really understand why they need it.
The project helped provide guidance on how to better engage with this audience to increase understanding of Life in Super and highlighted ways to communicate with them in order to help them be better equipped to make informed financial decisions.
Read more about the study and its findings in Investment Magazine.