TAL report dissects ties between insurance cover and confidence

Yasmine Raso

Senior Journalist

12 May 2026

New research from life insurance specialist, TAL, has uncovered strong ties between members’ understanding, awareness of and engagement with their insurance cover and financial confidence, at the same time as identifying a significant knowledge and education gap among the younger age cohort.

According to the report commissioned by TAL, titled ‘Making insurance matter: How super funds can help their members build financial confidence’, a survey of 2,000 super fund members aged between 25 and 64 found the members who were more engaged and informed about their insurance status were more financially confident.

Of the surveyed members who are unaware if they have insurance cover as part of their superannuation, only 18 per cent felt financially confident; this level rises to 42 per cent of those who have default cover but are unaware of the amount they are covered for, to 64 per cent for those who have default cover and are aware and finally 77 per cent for those who have “actively adjusted their cover to suit their personal circumstances”.

The research also highlighted the differences between awareness and engagement and how this impacts financial confidence, as most members (74 per cent) reported that they know of their insurance status – a mix of cover held inside super, outside super or not at all – but of the 29 per cent who have default cover and are aware of it, only 46 per cent know their cover amount and 64 per cent of those feel confident that they are “adequately protected against illness, injury or death”. This is compared to 42 per cent of members who don’t know their cover amount feeling the same confidence.

Dan Taylor, General Manager, Group Partnerships at TAL, said the research showed where both the awareness and knowledge gaps lie in relation to insurance cover and how super funds can better position to deliver more meaningful education opportunities for members.

“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,” he said.

“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. Knowing what they are covered for also builds members’ trust should they need to claim.”

According to the report, approximately 90 per cent of members surveyed said they trust their super fund to help them understand their insurance needs and would be open to receiving financial advice from them. This comes as a further 55 per cent indicated that they believed it was their super fund’s responsibility to provide more insurance education.

The research also found that members who had received communications from their super fund regarding insurance cover were more likely to take action; this was the case for at least 37 per cent of members, while a further 33 per cent were interested but it wasn’t prioritised.

The report also identified the younger generation – those aged 25 to 34 – as one most set to benefit from more targeted guidance and messaging about their insurance cover, given they have the highest rate of trust in their super fund (91 per cent) and 74 per cent who believe themselves to be uninsured are unsure if they have insurance cover as part of their super.

The research also noted recent analysis conducted by the Council of Australian Life Insurers (CALI) and KPMG, which found TPD claims had increased by 730 per cent among 30-to-40-year-olds in the 10 years to 2022.

“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,” Taylor said.