A new survey by the Council of Australian Life Insurers (CALI) has uncovered a startling trend among Australians. While a significant 79% insure their motor vehicles and 62% have home and/or contents insurance, only 34% hold life insurance. This indicates that Australians are nearly three times more likely to insure their cars than themselves.
The survey of over 5,000 working Australians also found that the lack of access to affordable financial advice is creating a national crisis. CALI CEO Christine Cupitt noted that many are underinsured and unprotected regarding their future financial security. Different age groups show similar patterns, with motor vehicle insurance being a top priority even among those nearing retirement (aged 55 – 64) and mid-career workers (aged 35 – 54). Younger career starters (aged 18 – 34) also prioritize car and health insurance over life insurance.
As the cost of living continues to rise, nearly half of Australians would cut additional superannuation contributions first. Australians are also three times more likely to drop life insurance from their budgets compared to car or home insurance. With current regulations limiting life insurers to general advice, over 40% of respondents desire personalized advice. The government’s Delivering Better Financial Outcomes legislation could change this, allowing life insurers to provide personalized advice upon request at no extra cost. Cupitt emphasized the importance of such reforms to meet Australians’ advice needs and safeguard their financial futures.
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