Does where you live influence the likelihood of having Life Insurance?

Find out if people in your state are more likely to have Life Insurance.

Margaret Rochford

19 February 2018 - 5 minute read

It may come as some surprise to find that people in different states have a different propensity to have Life Insurance.

This is the findings from NobleOak’s recent survey in which we asked people if they had cover. Results showed that just 42% of South Australians have Life Insurance, TPD cover, Trauma cover or Income Protection Insurance, 13% below the national average (55%).

By comparison, people in other states were more likely to have cover:

  • New South Wales 67%
  • Queensland 56%
  • Victoria 52%, and
  • Western Australian 47%.

It’s clear from these results that people in New South Wales residents consider Life Insurance or Income Protection Insurance a valuable and vital investment.

Why is this so?

There could be any number of reasons why people behave differently depending on the state they live in. Some reasons could be:

  • Demographic make up of the population. Our research showed that people over 55 tended not to have cover (66%) compared to people aged 30-34 where 36% did not have cover.
  • Occupation was another reason where we found that tradies were least likely to have cover (56%) compared to other groups such as professionals where just 28% did not have cover.

Whatever the reason, there is no doubt that having Life insurance is vital if you want financial peace of mind as life-changing events come in many shapes and forms.

Here are five significant life events which can trigger the need for Life Insurance:

  • Marriage or divorce

When you marry, you take on shared financial obligations and it’s a good time too, for newly married couples to take out adequate Life Insurance, as well as getting your will and superannuation in order.

Later in life, if divorce occurs, you may be left with a depleted income. Life Insurance is an effective way of protecting your dependents against an uncertain future in the event of your death.

  • Buying a house

When you buy your first home or buy a new one, chances are you’ll need to take out a home loan or increase your mortgage.  So you can’t afford to leave yourself unprotected. Who will pay the mortgage if something happens to you or your spouse? Can your family cover funeral expenses as well as making up for the sudden loss of income?  This is often a time to reassess your Life Insurance needs.

  • Having a baby

When you start or grow your family, you should ensure you have adequate Life Insurance in place. You may have Life Insurance in your super, but is it enough to cover the additional cost of bringing up a family if you’re not there?

Income Protection can also be an important addition to your financial cover, providing a continued income stream in the event of a life-changing accident or illness.

  • Sickness of a close friend or family member

When illness strikes a dear friend or loved one, it’s both a shock and a time to reassess your own financial protection. Common chronic diseases such as diabetes, asthma and heart disease are the leading causes of death and disability in Australia – creating a high burden for families and carers.

  • Your own illness or trauma

Your own illness or incapacitating trauma can also trigger the need for cover. No one wants to think about the possibility of developing a serious illness, dying or becoming totally and permanently disabled, but it can happen.

Whether you have dependents or not, Life Insurance can help make sure your loved ones don’t struggle to cover any debts you might leave behind if something unexpected were to happen and provide financial security for the longer term.

Even if you have some Life Insurance already, you should review your insurance needs at least annually to take account of any change in your circumstances.

Not sure what type of cover you need?

NobleOak has made it easier for you to work out what type of Life Insurance cover you need with their free online Life Insurance Calculator.

This simple, easy to use calculator covers Life Insurance, Total and Permanent Disability Insurance, Trauma and Income Protection Insurance and gives you a personalised report via email at the end. It only takes 10-15mins to complete. And it’s free!



Pureprofile Research December 2017

2016 ASIC Life insurance claims: An industry review