Life insurance proves last resort across age spectrum
An alarmingly low proportion of Australians say they would use a pay increase to take out financial protection, a TAL survey shows.
While more than 50 per cent in each age range said they would use the money to build up savings, less than 10 per cent across the age spectrum said they would use the money to buy life insurance or increase their cover level.
"This survey reveals the very low priority people place in thinking about using extra income to ensure they have adequate financial protection. It is a massive challenge but we need to change this mindset," TAL Group CEO Jim Minto said.
However, Minto said it was encouraging that most Australians would use the pay increase to "deleverage".
"The global financial crisis marked a turning point in consumer attitudes towards savings and debt, and deleveraging became an important priority. What we are seeing from this research is that this trend continues."
The research showed 59 per cent would try to build up savings, 38 per cent would put the money into their mortgage, 30 per cent would pay off their credit card or personal loan and 28 per cent would use it for bills.
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