New research from the Council of Australian Life Insurers, released ahead of the Investment Magazine Insurance in Super Summit on Tuesday, shows that life insurers paid out almost $6 billion across roughly 54,000 claims through group superannuation policies in the past 12 months.

CALI chief executive Christine Cupitt said that the payments showed that life insurance through super was already at work financially supporting thousands of Australian workers and their families facing illness, injury, disability, or death.

“Almost $6 billion in payments in 12 months shows this protection is not a minor consideration. It is an important part of Australia’s financial safety net.”

But the latest CALI Life Insurance Sentiment Tracker found that only one-in-three Australians understood the life insurance products and benefits they had, despite super remaining one of the most common ways working Australians hold cover.

Cupitt said insurance through superannuation was one of the most accessible, yet least understood, forms of financial protection.

“Many people may already have life insurance switched on inside their super, giving them access to death and disability cover,” Cupitt said.

“This protection may be quietly working in the background, but it isn’t a set-and-forget benefit. Your job, income, family, mortgage and working hours can all change, and your cover needs to keep pace.”

The near-$6 billion in payments showed life insurance through super was “an important part of Australia’s financial safety net”, Cupitt said, adding that Australians needed better access to simple, reliable information about the insurance they already had.

“For many Australians, accessing a financial adviser is out of reach. But they should be able to get straightforward, professional help to understand the cover they have,” she said.

The new research comes as insurers and superannuation funds gather at the Investment Magazine Insurance In Super Summit on Tuesday to address key challenges for group insurance, including the rising number of TPD claims stemming from mental ill health.

Research collated by KPMG for CALI, based on APRA data, shows that life insurers paid $2.42 billion in mental health-related claims in 2024. This accounted for 34 per cent of total claims payments. Group insurance made up the majority, with $1.68 billion and 21,425 claims, but retail showed the same pattern, with $737 million and 6,802 claims.

Overall, mental health related claims accounted for 35.4 per cent of TPD claims payments (one in three claims) and 32.6 per cent of income protection claims payments (one in three claims).

The Investment Magazine Insurance in Super Summit will be held at the InterContinental Double Bay in Sydney on July 21. Limited tickets are available to executives and employees of APRA-regulated super funds. Click here for more information.