Whether a superannuation fund member knows the details of their insurance cover has a direct bearing on how financially secure they feel, according to research released by TAL this month. The findings, drawn from a survey of 2,000 fund members between the ages of 25 and 64, point to a wide confidence gap between members who are informed about their cover and those who are not – a gap that fund operators may be in a position to close.
Members who were unaware of their insurance status returned the lowest confidence scores, with only 18% saying they felt financially protected against the impact of injury, illness, or death. Among members on default cover, that share rose to 52%. Members who had gone a step further and adjusted their cover to fit their personal circumstances reported the highest confidence levels, at 77%. Within the default cover cohort alone, knowing the dollar value of one’s cover made a measurable difference. Some 64% of members who knew their cover amount said they felt adequately protected, against 42% of those who did not.
The TAL data did not emerge in isolation. Separate consumer research published earlier in 2026 points to a population that is unusually attentive to its financial position. A January survey by MLC found that 55% of Australians named financial stability as their primary goal for the year. It ranked above diet, exercise, and family time – categories that have traditionally dominated new year priorities. The pattern held across age groups, though adults aged 31 to 45 were the most likely to name finances as front of mind, at 62%. A YouGov survey of 1,015 adults, conducted in February 2026, found that 63% of Australians had a household budget in place for the year, up slightly from 59% the year before. Covering essential expenses was the most frequently cited reason for budgeting, named by 64% of those with a budget. Growing savings generally was cited by 56% and avoiding overspending by 51%.
While 40% of respondents expected their financial position to improve over the course of 2026, 28% expected it to deteriorate. Among Australians aged 55 and over, the outlook was more cautious: 43% in that group anticipated their finances would worsen, compared with 13% who expected improvement. Dan Taylor (pictured), general manager of group partnerships at TAL, said the latest data points to a window of opportunity for funds to engage members on insurance matters. “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,” Taylor said.
The TAL research also examined what happens when funds communicate with their members about insurance. Among those who remembered receiving insurance-related communications from their fund, 37% said the communication led them to seek more information or take some form of action. More than eight in 10 members said they trusted their fund to provide guidance on insurance and wanted to receive it on a regular basis. Taylor said the value of insurance in super is not limited to claim events. “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,” Taylor said.
There also appears to be a relationship between insurance engagement and the member’s experience at claim time. The research found that members who understood their cover before making a claim were more likely to have realistic expectations about how the process would unfold. Those who were unaware of their cover details were more likely to be caught off guard if a claim did not proceed as they had expected. On the fund relationship more broadly, 50% of members who had modified their cover said they had developed a stronger sense of the value their fund provides – a result that may be of interest to funds monitoring member retention.
Two cohorts stood out in the TAL research as having the most to gain from targeted outreach. Among members aged 25 to 34, the proportion who did not know whether they held any insurance through their fund was high. TAL noted that 74% of those in this bracket who considered themselves uninsured were unaware they may already hold default cover. The research suggested that messages built around protecting a mortgage or supporting dependants are unlikely to connect with this group and that emphasising income replacement or support during recovery from accidents or mental health conditions may be more relevant. That framing aligns with where younger Australians appear to be financially: the YouGov data showed 70% of adults aged 25 to 34 expected their finances to improve in 2026, and 84% in that group reported having a household budget – the highest rate of any age group surveyed.
Women were the second cohort the research flagged. They were less likely than men to know their insurance status or to have reviewed and adjusted their cover. Among women who described themselves as uninsured, 71% said they had never looked into life insurance at all, compared with 59% of men. Career interruptions and part-time employment patterns can reduce superannuation balances over time, yet the research found many women rank their partner's insurance needs ahead of their own.
TAL’s report outlines a set of actions funds could consider in response to the data. These include communications that are segmented by member profile and timed around life events such as a new job, a change in family status, or a shift in income. The research also points to intra-fund advice services and digital tools that allow members to review or change their cover independently as areas where funds could expand what they offer. “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.
