Life insurance back of mind for Australians
Most Australians would rather spend any extra income on building up their savings than upgrading their life insurance policies, according to a national poll by TAL.
With 95 per cent of Australian families under-insured, more than half of the respondents said they would rather build up savings if they were to receive a 10 per cent pay rise.
Another 30 per cent would pay off bills, 28 per cent would increase their mortgage repayments and 25 per cent would pay off their credit card or personal debt.
Other respondents would rather fund a holiday (28 per cent), upgrade their car (14 per cent) or go out to dinner more often (8 per cent).
The number of Australians looking to take out or upgrade their personal insurance (income, disability, life and illness) was highest amongst Generation Y (7 per cent), followed by Generation X (4 per cent) and baby boomers (3 per cent).
"It is clear that the deleveraging taking place since the GFC is still a priority for consumers," TAL chief executive Jim Minto said.
"These figures reveal that most people would rather do almost anything other than start life insurance or enhance what is probably inadequate cover."
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
