Insurance in super: TAL research shows engaged members feel more financially confident
Media Release -New TAL research has found a direct link between member engagement with their insurance in super and how confident they are that injury, illness or death won't leave them or their family facing financial hardship.
The study of 2,000 super fund members aged 25–64 reveals that the more informed and engaged a member is, the more financially confident they are. Members who don't know their insurance status are the least confident, at 18%. That rises to 52% among those with default cover, and to 77% among members who have proactively adjusted their cover to suit their needs.
Among members with default cover1, 64% who know their cover amount feel adequately protected, compared to 42% who don't know how much insurance they have.
At a time when many Australians are facing financial uncertainty, and more are turning to unregulated online sources for financial advice2, the research finds super funds are increasingly well placed – and trusted – to provide guidance on financial protection.
Dan Taylor, General Manager, Group Partnerships at TAL, said the findings show the difference funds can make when they help members engage with their cover.
"Our research shows that insurance isn't only valuable for those who claim. When members understand their cover and how it works, it gives them real peace of mind – and super funds are well placed to help them get there. More than eight in ten members trust their fund to provide guidance on insurance and want to receive information on the topic regularly."
"Many Australians are facing increased cost of living pressures. They’re conscious of their finances and to the protection they have – or don't have. Super funds have a unique opportunity to meet members in that moment of heightened awareness and help them make sense of their cover."
"Better engagement helps ensure members have clarity about their cover and know what they need.”
Of those who recall receiving insurance communications from their fund, 37% were motivated to seek further information or take action.
Members who understand their cover are better prepared to navigate the claims process and have realistic expectations. Conversely, those unaware of their cover details are more likely to be surprised if a claim does not proceed as expected, said Mr Taylor.
“Knowing what they are covered for also builds members’ trust should they need to claim."
The benefits of engagement extend to the fund relationship itself. Half of the members who have adjusted their cover report a greater appreciation for the value provided by their fund, indicating a link between insurance engagement and member loyalty.
Opportunities to better support key member groups
The research highlights cohorts who could benefit from targeted guidance. For example, many members aged 25–34 don't know whether they have default cover within super3. Traditional messaging around protecting dependants and mortgages is less likely to resonate with this group. With young people experiencing higher rates of accidents, injuries and mental ill-health, there is an opportunity to reframe the value of insurance around living benefits that support recovery.
Similarly, women are less likely than men to know their insurance status or adjust their cover. 71% of women who describe themselves as uninsured have never looked into life insurance, compared to 59% of men. Career breaks and part-time work can leave women with lower superannuation balances and savings, yet many prioritise their partner's insurance needs over their own4.
The research identifies practical actions for funds, such as proactive and segmented communications triggered by significant life events, increased promotion of intra-fund advice and digital self-service tools.
"Every member's circumstances are different. The opportunity for funds is to meet members where they are and make it easier for them to get protection that's right for them," said Mr Taylor.
The full report, Making insurance matter: How super funds can help their members build financial confidence, is available for download here.
1 Default insurance in super is the automatic, standard cover provided to all members over the age of 25 or with a super balance over $6,000, unless they opt out. It’s designed to give baseline protection without requiring medical underwriting, individual applications or active member engagement. Premiums are paid from the member’s super account.
2Council of Australian Life Insurers, The Sate of Australia’s Safety Net report, November 2025.
374% of members aged 25-34 who say they are uninsured don’t know they may have insurance in super.
4Council of Australian Life Insurers