Generation Y is more likely to engage with a financial adviser and buy life insurance, according to a new survey conducted by life insurer TAL.
While almost one in five of all respondents were prompted by a financial adviser to consider their life cover requirements, that figure rose to 26 per cent among Gen Y.
Furthermore, the survey shows Gen Y – specifically those under the age of 25 – was far more likely to independently initiate the decision, with 48 per cent saying they bought life insurance unprompted, compared to the overall average of 39 per cent.
“These results reveal that more of our youngest adults are making their own decision to take out life insurance at a higher rate than older generations, which shows they are more engaged in their financial affairs than they have been given credit for in the past,” said TAL group chief executive officer Jim Minto.
“Younger generations are using technology to take matters into their own hands to seek out services and products to meet their needs, and it appears that their own research is leading them into seeking out financial products and advice.”
Other reasons for taking up life insurance included family discussions, discussions with their financial advisers and being motivated by a real life story or death, illness or accident.
“I am actually not surprised one in five people have heard of a story how life insurance has saved a family from financial hardship in a time of need,” Minto said.
Minto added life insurance should not be seen as a taboo topic, as it is delivering all-time record benefit payments to Australians.
“Let’s face it, life insurance has traditionally been something many people would rather not think about, even though they should,” he said.
“Hearing how life insurance can help financially in a time of need is a compelling reason to ensure protection is in place.”
