Two in three Aussies believe in life insurance

TWO thirds of Aussies say that life insurance can protect the things they have created in life and their dreams for the future, a nation-wide poll has found.

Those with a mortgage are the highest believers in financial protection (74%), followed by Generation X (73%) and those who say they are risk takers (71%).

These are among the findings of a nationwide Galaxy Research poll, commissioned by life insurer TAL Group, as part of its ongoing study on consumer behaviors and attitudes to financial risk and financial protection.

TAL Group CEO Jim Minto says the findings show those who have invested heavily in their dreams want to protect them.

"Those who have a mortgage or home or who have worked hard to save money are conscious that they need to protect their dreams in order to avoid losing everything should their income stop due to injury or illness," Mr Minto says.

Of the one in three Australians who don't believe life insurance can protect their dreams, 34% cite "money isn't everything" to support this view, while 25% say they don't believe in life insurance because "once they are gone their financial obligations will be out of their hands".

Mr Minto says these views are concerning because they demonstrate that up to a third of us may not be considering the full financial ramifications on our families should a parent not be able to work.

"A large lump sum or other forms of payment can help tide us through difficult times and no one can really dispute that," he says.

"So it may be that too many of us are mistakenly linking life insurance with protecting your money, when in reality it is about something deeper - protecting your family's ultimate wellbeing and your future dreams not just for yourself but those who rely on you.

"I would ask, if things go wrong and a family or couple doesn't have adequate protection, who will manage the ongoing obligations and commitments?"

Other key findings:

  • Baby Boomers are slightly less likely than other generations to agree that life insurance can protect their dreams (59%) compared to 73% of Generation X and 68% of Generation Y
  • Of those who say life insurance can't protect their lives and dreams, 34% of people who say that money isn't everything
  • Of those who say life insurance can't protect their lives and dreams, 22% say they would like the cover but affordability is the reason for having no protection.