Life Insurance Takes Backseat in Cost-Cutting Measures

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent findings indicate a significant disparity between those holding different types of insurances. Approximately 79% of the population has motor insurance, yet only 34% have life insurance according to the independent research conducted by the council.

The survey, which examined the behaviors of 5,000 people, highlights a particularly stark gap among individuals aged 55 to 64. More than 80% maintain motor or home insurance, but a mere 29% have acquired life insurance. Age groups 35-54 show that 38% hold life cover whereas this number drops to 32% for younger adults.

Interestingly, working Australians are three times more likely to drop their life insurance as compared to home or car policies, underlining a trend that could have long-term financial ramifications. Additionally, about 50% of those surveyed suggest they would stop superannuation contributions if it meant reducing expenses.

According to CALI CEO Christine Cupitt, the situation accentuates the “advice accessibility crisis in this country.” She explained, "The advice needs of Australians are not being met, particularly for those who can’t afford to pay for a financial adviser in a cost-of-living crisis."

Cupitt stresses the importance of receiving proper financial guidance, stating, “Getting the right advice can set them up for the future, getting no advice can leave them with nothing to fall back on when times get tough.”

Despite recognizing the importance of advice, over 40% of respondents expressed a desire for customized financial guidance. This need could potentially be met through tranche two of the federal government’s Delivering Better Financial Outcomes reforms, designed to bridge this gap.

This push for enhanced financial advice platforms underscores a larger narrative about the necessity for accessible, affordable advisory services, especially during challenging economic climates. According to the original report covered by the Council of Australian Life Insurers, ensuring Australians are adequately insured and advised is essential.

Published:Tuesday, 3rd Dec 2024
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Western Australia's Transport Sector Pushes for Enhanced Truck Licensing Standards

29 Mar 2026: Paige Estritori

Western Australia's transport industry is urging the state government to implement more stringent heavy vehicle licensing requirements, aiming to bolster road safety and address concerns over inexperienced drivers operating large trucks. This initiative follows South Australia's recent reforms, which introduced tougher conditions for obtaining multi-combination (MC) licenses. - read more

Australian Road Transport Industry Grapples with Escalating Fuel Prices

29 Mar 2026: Paige Estritori

The Australian road transport industry is currently facing significant financial pressures due to escalating fuel prices, which have substantially increased operational costs for trucking businesses nationwide. This surge in fuel expenses is compounding existing challenges, including rising maintenance costs, land taxes, and insurance premiums, thereby squeezing profit margins and threatening the viability of many operators. - read more

Navigating Seasonal Risks in Australian Trucking: Insurance Considerations

29 Mar 2026: Paige Estritori

Seasonal variations in Australia present unique challenges for the trucking industry, influencing safety, operational efficiency, and insurance considerations. Wet weather conditions, increased holiday traffic, and heightened freight demand during peak seasons can all impact the risk profile of trucking operations, necessitating a thorough understanding of these factors to ensure adequate insurance coverage and business resilience. - read more

Australian Insurers Grapple with AI Disruption Fears

29 Mar 2026: Paige Estritori

In recent weeks, major Australian insurers such as Insurance Australia Group (IAG), Suncorp (SUN), and QBE Insurance (QBE) have experienced notable declines in their stock prices. This downturn is largely attributed to growing investor concerns about the potential disruption posed by artificial intelligence (AI) within the insurance sector. - read more

Australian Insurers Face Challenges in AI and Cyber Risk Readiness

29 Mar 2026: Paige Estritori

Recent research indicates that Australian insurers are trailing their global counterparts in preparedness for emerging risks, particularly those associated with artificial intelligence (AI) and cyber threats. This preparedness gap has reached its widest point in four years, raising concerns about the industry's ability to manage these rapidly evolving challenges. - read more

Click for more Insurance News