The report notes an increase in group insurance coverage over the year ending June 2024, reversing a prior decline. According to ASFA, 8.8 million Australians now have life insurance through their super, representing an additional 300,000 from the previous year. Similarly, total and permanent disability (TPD) coverage has risen, now safeguarding 8.1 million individuals, an increase of 400,000 compared to the preceding year.
By comparing historical opt-in rates for life insurance and TPD insurance with current super coverage levels, ASFA established that six million more Australians benefit from these protective measures, with household spending unaffected due to their inclusion in superannuation funds. This coverage not only secures individuals but alleviates financial strain on families.
Data from the Australian Prudential Regulation Authority (APRA) underscores this trend, indicating that, as of June 2024, approximately $1.7 billion in death benefit payments and $3.0 billion in TPD payments were made through group insurance cover within superannuation frameworks.
According to ASFA CEO Mary Delahunty, while superannuation helps Australians pursue a comfortable retirement, it simultaneously provides essential insurance coverage, safeguarding millions from potential financial hardship. She emphasized the importance of this protection as it eases pressure on the social security system, which would face increased demands without these insurance provisions.
