Recent research undertaken by insurer TAL has highlighted that while Australians rate the importance of life insurance highly this is not matched by their take-up of this insurance.
While 79% of those surveyed rated life insurance, including TPD, income protection and trauma insurance, as important or very important, this contrasted with the 52% who said they actually owned one or more of these insurance types. Life insurance was the most commonly held insurance at 43%, while Trauma (critical illness) cover was held by only 20% of survey respondents.
The survey found that mortgage holders were more likely to have a greater appreciation of insurance and also higher levels of protection. However the take-up of insurance was noticeably lower among renters and middle to low income earners who arguably have the greatest need for protection.
Jim Minto TAL CEO said: “On the one hand it is encouraging that people recognize the vital role of life insurance but the relatively low protection levels reflects just how much work is to be done educating the community about the need to protect themselves and their families. In the event that one’s income stopped suddenly due to accident or illness, what is left to ensure ongoing commitments such as bills, rent or mortgage repayments and school fees to maintain current lifestyle levels, let alone the dreams of the future?”
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