Australians are more likely to insure their materal possessions ahead of their own life, with many choosing to forgo additional superannuation contributions to pay for rising insurance costs, according to the Council of Australian Life Insurers (CALI).
New research commissioned by CALI involving 5000 working Australians found 80 per cent of people have car insurance, while just a third insured their life.
The survey found baby boomers and Gen Xers approaching retirement were the most likely to insure material possessions over their financial future, and 90 per cent held insurance for their car and 80 per cent for their home, while less than a third have any life insurance.
The survey outlined what things people would cut from their budgets as they faced ongoing cost-of-living pressures and almost half of respondents stated they would firstly remove additional superannuation contributions despite the impact on their future financial health.
CALI chief executive Christine Cupitt said financial security had taken a back seat and the survey highlighted the difficulty in accessing affordable financial advice.
“The advice accessibility crisis in this country is leaving far too many people underinsured and unprotected when it comes to their future financial security,” Cupitt said.
“The advice needs of Australians are not being met, particularly for those who can’t afford to pay for a financial adviser in a cost-of-living crisis.”
She said the survey also showed more than 40 per cent of people wanted personalised advice to help them decide how much cover they need and the products that best suit them, but insurers were limited to offering general advice only.
Under tranche two of the government’s Delivering Better Financial Outcomes legislation, insurers would be able to provide specific advice to customers when they ask for it at no extra cost, she noted.
“Less than a quarter of people told us they want basic information only, proving just how critical financial advice reforms will be to giving Australians the kind of advice they want, when and where they want it,” Cupitt said.