Is your car’s life worth more than your own? The average Aussie thinks so!
Australians are now almost three times more likely to insure their cars instead of their biggest asset - themselves.
A study by the Council of Australian Life Insurers (CALI) has found that almost 80% of Australians have car insurance while just a third have a life insurance policy.
Less than a third of the Gen Xs and Baby boomers said they had a life insurance policy, while 90% have car insurance.
Is there any more room in the budget for life insurance?
There's value in protecting financial future
You could argue that the biggest asset we own is ourselves. Not our house, not our cars, but our ability to make income and protect our long-term financial health.
And if we’re no longer able to use it, it can be hard to make sure our loved ones will be taken care of financially.
Life insurance is one of those things that can provide peace of mind and safeguard our financial security. But it seems like Australians are getting more comfortable leaving it behind due to ongoing cost of living pressures.
Too young to know or cash strapped to care?
Let's be real. For most of us life insurance wasn't our biggest concern when we were younger,
Only 34% of career starters aged 18-34 have life insurance, while mid-career Aussies aged 35-54 are the most likely to be covered, with 38% having a policy.
So if we're not exactly bucking that trend, what is it? It might be because it's pretty hard to get personalised financial advice that doesn't hurt your wallet.
According to CALI, 40% of people want advice that's more personalised and helps them decide how much cover they need and the products that best suit them.
So where do we go from here?
At the moment Australian Life insurers can only give general advice, which is leaving many people underinsured. At least according to Christine Cupitt, CALI CEO.
This is about people building strong financial safety nets for themselves and their loved ones. Getting the right advice can set them up for the future, getting no advice can leave them with nothing to fall back on when times get tough," Ms Cupitt said.
"With ongoing cost of living pressures, people need someone to talk to about their financial future now more than ever."
With new federal legislation changes, this is the kind of advice life insurers would be able to give customers when they ask for it, at no extra cost.
It's hard to say
This change could help many Australians get the cover they need, but it's unclear how much Aussies will choose to take up life insurance.
Baby boomers and Gen Xs like their shiny things. Here's why:
- 90% have cover for their car and more than 80% for their home, while less than a third have life insurance.
- On average, working Australians are almost three times more likely to cut life insurance from their budget compared to cover for their car or home.
And I'm not saying it's necessarily the wrong choice. We're prioritising the things we need to live today - even if we're pushing off thinking about tomorrow. But is it the best decision for everyone?
Well, a discussion with a professional might help figure that out.
Compare and save on life insurance with Finder today.