Life Insurance – Not a Priority for Australians?
When asked what they’d do with extra money in case a 10% raise was granted to them, the answers of the respondents in a recent TAL survey varied. However, it appeared that life insurance was not among the priorities.
The top 4 answers were:
- Build up saving (58%)
- Pay off bills (30%)
- Pay off mortgage (28%)
- Reduce credit card and loan debts (25%)
Australians understand the needs to save and reduce debts but seem to fail to understand the importance of protecting their income in case they are unable to continue working. According to Lifewise/NATSEM, 95% of Australians don’t have adequate coverage. TAL’s chief executive Jim Minto said the industry needs to focus on delivering the message about ‘the value of the forms of life insurance – income protection, permanent disability cover, lump sum upon death or critical illness’.
The survey showed only 5% of Australians willing to take out or upgrade life insurance and 4% are interested in taking out a different insurance form. This was an indication that most Australians are willing to spend on other things than prioritize life insurance or enhance an existing coverage.