Australians in the dark on life insurance
New research from LifeInsuranceFinder.com.au has found that more than 65 per cent of Australians do not have adequate life insurance while almost 80 per cent have no intention of acquiring it at all.
Based on a survey of more than 1200 online participants, the comparison site found that 39 per cent cited expense as the main deterrent while 41 per cent were not fully aware of the pitfalls of not having life insurance.
LifeInsuranceFinder.com.au publisher Fred Schebesta said Australians needed to be aware of these consequences and what they would mean for their loved ones in the event of their death.
This included leaving outstanding debts and ongoing expenses to family and possibly forcing them to live a cheaper way of life, he said.
"It is vital for anyone looking to take out a life insurance policy to assess their current financial situation and gain a clear understanding of how much cover they actually need and what they need cover for," Schebesta said.
"In the long run, it's a pretty vital payment to ensure that your loved ones are protected in the event of your death."
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
