Survey reveals 'concerning' insurance sentiment

A nationwide poll, conducted by Galaxy Research on behalf of the life insurer, found that of the one in three Australians who do not believe life insurance can protect them, 34 per cent cited “money isn’t everything” as a justification for their view.

This was compared with 25 per cent who said they did not believe in life insurance because “once they are gone their financial obligations will be out of their hands”.

Commenting on this result, TAL chief executive Jim Minto said for Australians to hold this view is concerning because it demonstrates that people may not be considering the full financial ramifications.

“A large lump sum or other forms of payment can help tide us through difficult times and no one can really dispute that,” Mr Minto 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?” he said.

The nationwide poll also found that those with a mortgage are the greatest believers in financial protection (74 per cent), followed by those of generation X (73 per cent) and then those who identify as risk takers (71 per cent).

“Those who have a mortgage or home or who have worked hard to save money are conscious that they need to protect their dreams in order to avoid losing everything should their income stop due to injury or illness,” Mr Minto said.