Mortgage holders rate life insurance highly
Mortgage holders, self-proclaimed risk takers and Generation X, are the biggest believers in financial protection, a survey reveals.
Data from a Galaxy Research poll found that almost three-quarters of Australian mortgage holders believed life insurance could "protect their dreams", with a similar proportion of 35 to 49-year-olds also backing the importance of life cover.
The survey commissioned by TAL, revealed that baby boomers were less likely than other generations to rate life insurance so highly.
While the majority of Australians said life cover was important, TAL Group chief executive, Jim Minto, said the fact that one-in-three did not believe financial protection could protect their dreams, was concerning.
The survey found that of those who believed life insurance could "protect the things they've created in life and their dreams", a third said "money isn't everything", with a quarter responding that "once I'm gone financial obligations will be out of my hands".
Minto said these views are concerning because they demonstrate that up to a third of us may not be considering the full financial ramifications on our families should a parent not be able to work.
"A large lump sum or other forms of payment can help tide us through difficult times and no one can really dispute that," he said. "So it may be that too many of us are mistakenly linking life insurance with protecting your money, when in reality it is about something deeper — protecting your family's ultimate wellbeing and your future dreams not just for yourself but those who rely on you.
"I would ask, if things go wrong and a family or couple doesn't have adequate protection, who will manage the ongoing obligations and commitments?"
AUTHOR
Nicholas O'Donoghue
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