The survey indicates that the proportion of Australians holding these financial products increased to 60% in January from 55% the previous year and just 51% three years prior. Key demographics showing a greater likelihood to maintain life insurance include younger individuals, urban residents, higher-income earners, and mortgage-holders.
NobleOak notes a consistent trend: despite budgetary constraints, many Australians are prepared to make sacrifices in non-essential spending areas to preserve their life insurance coverage. Groceries, education costs, and mobile phone usage are among the expenditures seeing cuts to afford insurance premiums.
Participants were surveyed on the financial priorities they would revise if they encountered prolonged income loss or financial support suspension. Luxury items like holidays, entertainment, and health and beauty expenses were the first targets for reduction, with grocery costs closely following life insurance in priority.
Interestingly, the position of income protection insurance has climbed up the priority list, now sitting above grocery costs, marking a shift from last year when it was slightly less prioritised.
The study also uncovered other significant insights: over 40% of life policyholders believe their coverage does not adequately meet their needs, and the utilisation of financial advisers for life insurance and income protection has returned to pre-pandemic levels, with 14% of respondents seeking such advice. Additionally, the survey reveals a gender gap in financial confidence, with women reporting less confidence compared to men.
