Family financial security a priority for life insurance

Financial security for loved ones was the overwhelming reason many Australians took out life insurance, according to research by Allianz Australia.

A survey of Allianz life insurance customers showed that 80 per cent of respondents took out life insurance to provide financial security for their spouse and children.

Over 60 per cent of customers said their main concern was ensuring that the family mortgage would be paid if the unexpected happened.

“Protecting number two, three and four, rather than ‘number one’, was of paramount importance to those surveyed,” Allianz Australia life insurance chief executive Jonathan Poole said.

More than half the respondents indicated they had household debt of more than $200,000.

“Given these figures, it’s little surprise that people want to leave behind enough money to pay their mortgage and leave a nest egg so their partner and children can continue a stable and secure family life,” Poole said.

However, a number of those surveyed still claimed there were significant barriers preventing them taking out the insurance they needed.

Forty-one per cent said they found the process of taking out life insurance difficult, with 25 per cent claiming it was confusing and 42 per cent generally not trusting life insurance companies to pay out the claim.

According to the survey, over 80 per cent of customers did not want to see a financial planner to take out life insurance.