Having a secret money stash is no substitute for life insurance, according to TAL Group chief executive officer Jim Minto, who has urged uninsured consumers to consider their protection needs.
Minto's comments come as TAL's research shows a large percentage of people living in married or de facto relationships have their own independent finances, with many having so-called "secret stashes".
Almost half of married or de facto people have a bank account to which their partner has no access, with 3 per cent holding an account that their partners are not aware of.
While the average amount held in these secret accounts is $30,000, around 10 per cent have more than $100,000 — but 40 per cent of surveyed participants had lass than $5,000.
Minto said many said the reason they maintained those covert accounts was having a safety-net in case something happened.
"While we may not know the precise motivation behind all these secret bank accounts, such accounts are no substitute for proper financial protection in the event one's income suddenly stopped for good or for an extended period as a result of illness," Minto said.
"We know that people have their own financial goals, or that their attitudes to money might not always be compatible with their partner, so there can be some very good reasons for keeping money and life insurance protection separate," he added.
In cases where there are joint debts such as mortgages and other shared responsibilities, a shared approach to life insurance can make a lot of sense, Minto said, urging consumers to visit a financial adviser.
"We really encourage people to research and consider their risks and protection needs. For example, a professional financial adviser can help a couple come to an agreed view about how they can best plan financially for the unexpected."
