Life insurance is still a super idea
This is a powerful demonstration of the role super funds play in protecting Australians – not just in retirement, but throughout life's most challenging moments.
Still, there's room to do more. Many members don't realise what cover they have or how to tailor it to their needs. Default cover is a great starting point but it differs significantly between funds. Without engagement or advice, members are unlikely to tailor their cover and instead rely on default settings that may not suit their individual needs.
Regulatory changes introduced since 2019 – such as restrictions on default insurance for younger members or those with low balances or inactivity – were designed to protect retirement savings, but they've also led to gaps in coverage. ASFA estimates that 11,000 Australians are now missing out on $1.5 billion in disability benefits each year.
Super funds are working hard to close these gaps by helping members engage early and make informed choices about their insurance needs – so they don't miss out on the protection they may need most.
Underinsurance has broader social implications. When individuals aren't adequately protected, the burden shifts to families, communities, and taxpayers. Increased reliance on government support places pressure on public systems designed to support vulnerable Australians.
In today's cost-of-living crisis, the financial shock of losing a loved one can push families into immediate hardship. Without adequate death cover, many would struggle to meet basic expenses like rent, groceries, and school fees – let alone plan for the future. Life insurance through super can provide a vital buffer, helping families maintain stability during one of the most difficult times in their lives.
While Australians are more likely to hold permanent disability cover, it's income protection that often makes the biggest difference in the early stages of illness or injury. Without it, a temporary setback can quickly spiral into a permanent crisis. Early financial support can mean the difference between recovery and long-term disability.
Nearly half of Australians have three months or less in savings if they're unable to work. Women are particularly vulnerable – 35 per cent couldn't cover expenses beyond one month. Income protection provides a critical safety net, offering regular payments to help people stay afloat while they recover.
Many funds offer the ability to take up income protection and tailor the level of cover. Doing this through super allows people to balance current protection needs with saving for retirement – and importantly, it's funded through super rather than as an out-of-pocket expense.
At Acenda, we're proud to partner with super funds to help members understand and optimise their insurance cover. We're passionate about improving outcomes and driving innovation that supports Australians through every stage of life.
Super funds play a vital role in building a more secure future for Australians – and the more the industry optimises the experience, the better the outcomes for members, their families, and the broader community.
So Australians can continue to take life on.
This article is general in nature and was prepared without taking into account the objectives, financial situation or needs of any individual. Please consider the appropriateness of the information in this article having regard to your own objectives, financial situation and needs and obtain your own financial advice if you need to do so. Please also consider the product disclosure statement of any financial products you are considering before making any decision about them.
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But lower rates won't fix everything. Input costs, particularly fertiliser, fuel and chemicals, are once again on the rise. Margins remain under pressure, and planning remains paramount. The temptation to wait for the rate drop should not delay critical conversations around restructuring or refinancing. Property markets are tightening in a different way. National listings hit a four-year low in June, with just 33,159 new properties listed across the country. That's 11.7 per cent down on last year, and 9.2 per cent below the five-year average. At the same time, vendor discounting narrowed to 3.4 per cent, the lowest level in months. In rural markets, we're seeing a similar story. Quality properties remain scarce, and well-capitalised buyers are still active, particularly in regions with reliable water, infrastructure, and logistics access. There's little evidence of widespread distress selling, and vendors are holding firm on price. While interest rates have cooled buyer enthusiasm somewhat, serviceability constraints are now more of a limiting factor than sentiment. This is a quiet, negotiated market - but one where opportunities exist for the well-prepared. Dwelling approvals surged in June, up nearly 12 per cent for the month and led by a 33 per cent rise in multi-unit approvals. Annual approvals have reached 187,330, a solid 13.9 per cent increase on last year. That's good news, but still short of the 240,000 dwellings per year needed to meet the federal government's housing target. For regional Australia, the implications are twofold. First, workforce availability remains constrained by a lack of housing in regional areas. Second, demand pressures in capital cities can divert labour, materials and political focus away from the regions. We are seeing more developers and infrastructure bodies express interest in regional build-to-rent models and workforce accommodation hubs. Whether these plans materialise at scale remains to be seen, but approvals momentum is at least heading in the right direction. The latest Bank On It report from the Australian Banking Association confirms what most of us have long suspected: the era of branch banking is all but over. Just 0.7 per cent of banking interactions now happen in person, and mobile wallets alone accounted for over $160 billion in spending last year. That figure is up 23-fold since 2019, with a 28 per cent rise in the past 12 months alone. In the cities, this shift is seen as progress. But in the bush, it's a double-edged sword. While digital convenience has obvious benefits, the hollowing out of physical banking infrastructure is leaving rural Australians stranded when it comes to complex lending, succession planning and financial guidance that can't be solved with an app. The future might be cashless, but it shouldn't be connectionless. 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That's 11.7 per cent down on last year, and 9.2 per cent below the five-year average. At the same time, vendor discounting narrowed to 3.4 per cent, the lowest level in months. In rural markets, we're seeing a similar story. Quality properties remain scarce, and well-capitalised buyers are still active, particularly in regions with reliable water, infrastructure, and logistics access. There's little evidence of widespread distress selling, and vendors are holding firm on price. While interest rates have cooled buyer enthusiasm somewhat, serviceability constraints are now more of a limiting factor than sentiment. This is a quiet, negotiated market - but one where opportunities exist for the well-prepared. Dwelling approvals surged in June, up nearly 12 per cent for the month and led by a 33 per cent rise in multi-unit approvals. Annual approvals have reached 187,330, a solid 13.9 per cent increase on last year. That's good news, but still short of the 240,000 dwellings per year needed to meet the federal government's housing target. For regional Australia, the implications are twofold. First, workforce availability remains constrained by a lack of housing in regional areas. Second, demand pressures in capital cities can divert labour, materials and political focus away from the regions. We are seeing more developers and infrastructure bodies express interest in regional build-to-rent models and workforce accommodation hubs. Whether these plans materialise at scale remains to be seen, but approvals momentum is at least heading in the right direction. The latest Bank On It report from the Australian Banking Association confirms what most of us have long suspected: the era of branch banking is all but over. Just 0.7 per cent of banking interactions now happen in person, and mobile wallets alone accounted for over $160 billion in spending last year. That figure is up 23-fold since 2019, with a 28 per cent rise in the past 12 months alone. In the cities, this shift is seen as progress. But in the bush, it's a double-edged sword. While digital convenience has obvious benefits, the hollowing out of physical banking infrastructure is leaving rural Australians stranded when it comes to complex lending, succession planning and financial guidance that can't be solved with an app. The future might be cashless, but it shouldn't be connectionless. There's been a significant shift on the regulatory front, with APRA proposing a three-tier framework that will allow mid-tier banks to use their own internal credit models. If adopted, this change would reduce the capital non-majors need to hold against loans, potentially unlocking a wave of more competitive lending. That's good news in theory, especially for regional borrowers who often find themselves at the mercy of rigid bank policies. But one major hurdle remains in place: the 3 per cent serviceability buffer. Despite inflation trending down, this buffer continues to suppress borrowing capacity for many agribusiness clients, especially those with volatile cash flows or non-standard income structures. In practice, we could see a more level playing field emerge between major and non-major lenders, but it will take time and trust. Borrowers should be alert, not alarmed, and ready to act if funding conditions improve. June's inflation figures have shifted the conversation. Headline CPI dropped to 2.1 per cent, while the RBA's trimmed mean measure fell to 2.7 per cent, squarely within the target range for the second quarter running. Key contributors like rent and insurance, which had previously soared, have begun to cool. This strengthens the case for a rate cut at the RBA's August meeting. With the cash rate sitting at 3.85 per cent, borrowers are watching closely. A cut would be a welcome relief for those coming off fixed-term loans and facing a wall of repayments. But lower rates won't fix everything. Input costs, particularly fertiliser, fuel and chemicals, are once again on the rise. Margins remain under pressure, and planning remains paramount. The temptation to wait for the rate drop should not delay critical conversations around restructuring or refinancing. Property markets are tightening in a different way. National listings hit a four-year low in June, with just 33,159 new properties listed across the country. That's 11.7 per cent down on last year, and 9.2 per cent below the five-year average. At the same time, vendor discounting narrowed to 3.4 per cent, the lowest level in months. In rural markets, we're seeing a similar story. Quality properties remain scarce, and well-capitalised buyers are still active, particularly in regions with reliable water, infrastructure, and logistics access. There's little evidence of widespread distress selling, and vendors are holding firm on price. While interest rates have cooled buyer enthusiasm somewhat, serviceability constraints are now more of a limiting factor than sentiment. This is a quiet, negotiated market - but one where opportunities exist for the well-prepared. Dwelling approvals surged in June, up nearly 12 per cent for the month and led by a 33 per cent rise in multi-unit approvals. Annual approvals have reached 187,330, a solid 13.9 per cent increase on last year. That's good news, but still short of the 240,000 dwellings per year needed to meet the federal government's housing target. For regional Australia, the implications are twofold. First, workforce availability remains constrained by a lack of housing in regional areas. Second, demand pressures in capital cities can divert labour, materials and political focus away from the regions. 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Canberra Times
2 hours ago
- Canberra Times
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AU Financial Review
2 hours ago
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Life insurance is still a super idea
In FY24 alone, super funds paid out $1.7 billion in death benefits and $3 billion in permanent disability payments – providing vital support to Australians when it mattered most. This is a powerful demonstration of the role super funds play in protecting Australians – not just in retirement, but throughout life's most challenging moments. Still, there's room to do more. Many members don't realise what cover they have or how to tailor it to their needs. Default cover is a great starting point but it differs significantly between funds. Without engagement or advice, members are unlikely to tailor their cover and instead rely on default settings that may not suit their individual needs. Regulatory changes introduced since 2019 – such as restrictions on default insurance for younger members or those with low balances or inactivity – were designed to protect retirement savings, but they've also led to gaps in coverage. ASFA estimates that 11,000 Australians are now missing out on $1.5 billion in disability benefits each year. Super funds are working hard to close these gaps by helping members engage early and make informed choices about their insurance needs – so they don't miss out on the protection they may need most. Underinsurance has broader social implications. When individuals aren't adequately protected, the burden shifts to families, communities, and taxpayers. Increased reliance on government support places pressure on public systems designed to support vulnerable Australians. In today's cost-of-living crisis, the financial shock of losing a loved one can push families into immediate hardship. Without adequate death cover, many would struggle to meet basic expenses like rent, groceries, and school fees – let alone plan for the future. Life insurance through super can provide a vital buffer, helping families maintain stability during one of the most difficult times in their lives. While Australians are more likely to hold permanent disability cover, it's income protection that often makes the biggest difference in the early stages of illness or injury. Without it, a temporary setback can quickly spiral into a permanent crisis. Early financial support can mean the difference between recovery and long-term disability. Nearly half of Australians have three months or less in savings if they're unable to work. Women are particularly vulnerable – 35 per cent couldn't cover expenses beyond one month. Income protection provides a critical safety net, offering regular payments to help people stay afloat while they recover. Many funds offer the ability to take up income protection and tailor the level of cover. Doing this through super allows people to balance current protection needs with saving for retirement – and importantly, it's funded through super rather than as an out-of-pocket expense. At Acenda, we're proud to partner with super funds to help members understand and optimise their insurance cover. We're passionate about improving outcomes and driving innovation that supports Australians through every stage of life. Super funds play a vital role in building a more secure future for Australians – and the more the industry optimises the experience, the better the outcomes for members, their families, and the broader community. So Australians can continue to take life on. This article is general in nature and was prepared without taking into account the objectives, financial situation or needs of any individual. Please consider the appropriateness of the information in this article having regard to your own objectives, financial situation and needs and obtain your own financial advice if you need to do so. Please also consider the product disclosure statement of any financial products you are considering before making any decision about them.
