Over 3 million Australians lack adequate insurance coverage

Nearly 90% believe it is crucial to access financial support through their life.

More than two-thirds of Australian workers are concerned that cost of living pressures may impact their ability to afford life insurance in the future. , according to the inaugural State of Australia’s Safety Net report.

Additionally, nearly 90% believe it is crucial to access financial support through their life insurer during mental health challenges, but only a third would actually seek help from their insurer, preferring instead to rely on family, friends, or government assistance.

The report, commissioned by the Council of Australian Life Insurers (CALI), surveyed over 5,000 workers and found that young people (18-34 years), women, and mid-career workers (35-54 years) are particularly underserved in terms of financial advice. 

Yet, a significant underinsurance problem persists, leaving over 3 million Australians inadequately protected. Despite nearly a third of Australians considering seeking financial advice on life insurance in the past three months, only 8% received it.

“Australia’s safety nets are stretched far too thin, and people are increasingly worried about falling through the cracks. Life insurers have a critical role to play to ensure that doesn’t happen,” CALI chief executive officer, Christine Cupitt, said.