There has always been some speculation about the degree to which Super fund owners understand their insurance cover within the Super. A media release on the ASFA website gives it a final confirmation. The release implores all the super fund members to give a thorough reading to their policies and figure out if it is good enough for them.
Too few members are informed about insurance within Super
It does not make for a great statistic that 40% of members do not have any clue about fund-embedded insurance. Women fare double as badly as men! The stats are all the more disheartening for Gen Y. Nearly 20% of members below 32 years of age have no understanding of Super. 50% of members claim to have very limited understanding.
The release further establishes that around 40% of members do not know how to proceed in case they wanted to change something about their cover. This does not make for happy reading surely!
ASFA’s brief guide
The ASFA has come up with a brief guide to make “insurance within Super” understandable. Questions like “what happens in the event of my death?” and “can I leave the cover at any time?” are answered for us in easy-to-understand fashion.
You can go through the media release here.
In my opinion, this is a smart initiative by ASFA. With knowledge about “insurance within Super” being as low as this, it is no surprise that many of the Super fund members do not know about the SIS regulation and the need to comply with it.
Lack of knowledge can lead to loss of money
Similarly, they are caught off guard when asked which one of the two is better — insurance within Super or outside it. But to think, unless you have a hang of the scene and its various possibilities, you can never make the best use of the offering. I think, it is time members became a little more attentive. It is one thing to say in public,” Hey, I was never too good at math!” and quite another not to be informed about something which can cost you money.
How well informed are you about insurance within Super?