Savings and investment plans, and life insurance rank fourth and fifth in likelihood of being cut back if income or financial support was lost, according to a survey.
Life insurer, NobleOak Life's survey on expense priorities found Australian adults placed a higher priority on their car and home insurance premium and mobile phones, than their investments and life insurance.
NobleOak chief executive, Anthony Brown, said this highlighted that the life insurance industry still had work to do to outline the true value it provided to customers.
"While the emotional implications of a family tragedy or major illness are often devastating, many of us don't contemplate the lasting financial implications to our families," Brown said.
"It is this reason that Australians are more likely to cut back on life insurance premiums, than car or home insurance premiums, or even mobile phones."
Brown noted that if Australians did cut down on expenses in 2017, the travel industry would be the first to suffer.