Consumers over-rate life in super
Financial planners need to educate their clients about the need to look beyond their superannuation fund for life insurance, a Financial Planning Association of Australia (FPA) board member believes.
Speaking at the FPA Professionals Congress, Matthew Brown, told delegates "there's a lot of education" to do, to ensure clients are aware of their life insurance needs.
Brown said may clients assumed they had more cover than they really had.
"They make that assumption that ‘my superannuation through my employer is going to give me (adequate) cover, I've got $160,000 in my superannuation that's my life insurance'," he said.
"Well in fact they might only have $12,000 (cover), the rest of it is the superannuation balance.
"Seven out of 10 people assume they have enough cover through their superannuation — when you consider only two out of 10 are getting financial planning advice full stop, we've got a big gap to fill."
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