More Australians are willing to give up life insurance – But at what cost?
Research by the Council of Australian Life Insurers (CALI) shows many Aussies are willing to drop Life Insurance as the economy puts the heat on
The study of 5000 workers found that, when competing against groceries and rent, life insurance is the latest household bill on the chopping block for Aussies feeling the pinch.
More than two-thirds of workers are worried about their ability to afford life insurance in the future – with almost one-quarter of people with life insurance policies willing to cancel their coverage.
It's safe to say, it's getting more expensive to manage our mortality.
Women especially feeling the crunch
The report –led by renowned researcher Rebecca Huntely – highlights the intense pressures Australians face to secure their financial security together.
Higher living costs and the uncertain economic environment have led to increased stress levels and concern about mental health in our community.
And for women, Huntley says the challenge is even greater.
We know that women are much more aware of all of the cost-of-living increases across the board.
Hidden cost to cutting life insurance
It's not surprising many are thinking about trimming the fat in their expenses to afford other important services and bills.
But Australians may be robbing themselves of a crucial safety net – including important mental health support – by removing life insurance from their budget.
Life insurers are currently the second-largest provider of financial support for mental health issues, according to the Federal Government. Last year alone, over 91,000 Australians received over $12 billion in financial support from providers.
Despite this, three-quarters of people considering cancelling their life insurance were unaware that coverage could include mental health.
Surprising, right?
How can Australians find life insurance coverage that suits their budget?
Before you consider removing life insurance from your budget it's important to consider all the options out there.
One of the more reliable ways to get a better deal is to regularly compare your coverage. You can compare life insurance with Finder, but it's also worth reviewing your current policy to begin with, to make sure the inclusions still meet your needs. Then, you can compare apples with apples when you shop around.
Go through the details of your policy and work out exactly what you need and what you don't. If your circumstances change, a lower level of coverage might suit you – you won't know until you check.
With calls from CALI for federal government legislation to allow insurers to provide simple advice on products, the picture may become even clearer in the near future. But until then we've got you covered.
