Life Insurance Takes Backseat in Cost-Cutting Measures

2

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
Source: Paige Estritori

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

Share this news item:

Insurance News

Clear

Businesses Advocate for Reforms Amid Rising Insurance Premiums

01 Dec 2025: Paige Estritori

The Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, has released a report highlighting the urgent need for coordinated reforms to address the escalating insurance premiums affecting small and medium-sized enterprises (SMEs). The report underscores that soaring premiums are compelling many SMEs, including beauty salons, to either forgo insurance or reduce coverage, posing significant risks to their operations. - read more

AFCA Determines Home-Based Waxing Salon Is a Business

01 Dec 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) recently ruled that a home-based waxing salon operated by a Suncorp customer constitutes a business, not merely a hobby. This decision has significant implications for beauticians managing home-based operations, particularly concerning insurance disclosures and compliance. - read more

ASIC Announces 2025 Focus on Insurance Pricing and Claims Handling

01 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has unveiled its enforcement priorities for 2025, placing a significant emphasis on insurance pricing practices, claims handling, and complaints processes. This initiative aims to enhance consumer protection and ensure fair practices within the insurance industry. - read more

WFI Insurance's $250,000 Donation Supports Flood-Affected Queensland Farmers

30 Nov 2025: Paige Estritori

In response to the catastrophic flooding that has devastated parts of western Queensland, WFI Insurance has stepped forward with a substantial donation of $250,000 to Rural Aid. This contribution is aimed at bolstering relief efforts for farming communities grappling with the aftermath of the region's most severe floods in half a century. - read more

AFCA Supports Significant Home Insurance Premium Increase Based on Updated Flood Risk Assessment

30 Nov 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently upheld a substantial increase in home insurance premiums for a property, attributing the rise to updated assessments of flood risk. This decision underscores the critical role of accurate risk evaluation in determining insurance costs and the necessity for property owners to stay informed about potential changes in their risk profiles. - read more

Click for more Insurance News