Australians Unprepared when it comes to Life Insurance and Income Protection
Purchasing falls 16% in 2 years
Media Release: Thursday, 25 February 2020
The number of Australian’s intending to purchase Life Insurance since 2018 has dropped dramatically, falling 16% from 56% in 2018 to just 47% in 2020 according to the latest findings from NobleOak’s annual Life Insurance industry survey.
The perceived cost on insurance is cited as the biggest reason for not having insurance with 30% of respondents saying they believe it is too expensive. Of those respondents who do have cover, it appears only 32% are planning to renew their cover this year.
NobleOak’s CEO, Anthony R Brown said:
“Interestingly, 27% of respondents said they won’t be renewing their cover as they don’t expect to use it. This shows there’s a gap in the real understanding of the value in holding Life Insurance. It’s something we all hope we never have to use but is there for those unforeseen circumstances.”
Interestingly, while 27% of respondents are not expecting to use their Life Insurance, respondents rated cancer as the number one illness likely to happen to someone like them, followed by a heart attack, car accident or a stroke. There appears to be a disconnect here and although respondents believe these illnesses are likely, they are not preparing for this and are left vulnerable should an illness occur.