Australian workers are becoming increasingly concerned about their financial security, prompting renewed calls for greater awareness of life insurance held through superannuation.
According to the latest Life Insurance Sentiment Tracker by the Council of Australian Life Insurers (CALI), two in five Australians are uncertain about their financial situation over the next 12 months.
CALI CEO Christine Cupitt said life insurance provided through superannuation remained one of the most accessible forms of financial protection but was often poorly understood.
"Many people may already have life insurance switched on inside their super, giving them access to death and disability cover," she said.
However, she stressed that insurance cover should not be treated as a "set-and-forget" benefit, as changes in employment, income, family circumstances, mortgages and working hours could affect an individual's protection needs.
The survey also found that only one in three Australians understood the life insurance products and benefits they currently held, despite superannuation being one of the most common ways working Australians obtain life insurance cover.
Ms Cupitt said ongoing cost-of-living pressures could prompt some Australians to reduce or cancel their insurance without fully understanding the financial consequences.
"People are dealing with a lot. Budgets are stretched, living costs are increasing and that could get worse if you are forced out of your income through illness or injury," she said.
She encouraged Australians to regularly review their insurance cover rather than waiting until they faced illness, injury or another life-changing event.
The industry paid almost A$6bn ($3.9bn) through group superannuation policies over the past 12 months, supporting around 54,000 claims from Australians and their families.
Ms Cupitt said the claims experience demonstrated the important role life insurance through superannuation plays in Australia's financial safety net, providing support for individuals and families affected by illness, injury, disability or death.
She also called for Australians to have better access to simple, reliable information about their existing insurance cover.
CALI said many Australians are unable to access affordable financial advice and reiterated its support for the Federal Government's Delivering Better Financial Outcomes reforms. The proposed reforms would allow life insurers to provide simple advice about their own products when customers seek assistance, helping to address Australia's financial advice gap.