Life insurance can protect your dreams say Aussies

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 Australia’s largest life insurer TAL, as part of its ongoing study on consumer behaviors and attitudes to financial risk and financial protection.

TAL Group CEO Jim Minto said the findings may demonstrate that self-aware Australians are more likely to believe in life insurance because they are likely to have invested heavily in their dreams and 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.”

Of the one in three Australian’s 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 said 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. 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,” he said.

“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.

Table 1: Age groups and risk segments of Australian’s that believe life insurance can protect the things they’ve created in life and their dreams

Table 2: House type of Australians who believe life insurance can protect their dreams

Table 3: Of those who say life insurance can’t protect their lives and dreams, the reasons for this are

Further information:

Stuart Snell 02 9448 9879/0417 921 235 stuart.snell@tal.com.au 

About TAL: The specialist voice of life insurance in Australia

TAL is Australia’s largest life insurance company with leading competitive offerings in each of its core distribution channels: direct to customers; through financial advisers; and via group and workplace superannuation schemes. With in-force premiums of $2.2 billion, TAL provides more life insurance solutions to Australian than any other insurer. TAL is owned by The Dai-ichi Life Insurance Company, Limited, one of the world’s largest life insurers.