While most surveyed Australians rate life insurance as important, little more than half actually take out a policy, according to a TAL survey.
The research drew attention to a long-feared disconnect between the general consensus on insurance and consumer action, particularly among retirees and pre-retirees.
It showed eight in ten Australians said they saw life insurance as important or very important, but just 52 per cent had a plan in place.
Australians with mortgages were the most likely to recognise life insurance as important, but their protection levels still did not match their concern, TAL said.
“On the one hand it is encouraging people recognise the vital role of life insurance but the relatively low protection levels reflects just how much work is to be done educating the community about the need to protect themselves and their families,” TAL CEO Jim Minto said.
“It is hard to reconcile that most people understand how important it is to protect their lifestyles and their families’ financial wellbeing, but at the same time are not taking the action they need to do so.”
