Cyber Insurance Online :: News
SHARE

Share this news item!

Life Insurance Takes Backseat in Cost-Cutting Measures

Life Insurance Takes Backseat in Cost-Cutting Measures

Life Insurance Takes Backseat in Cost-Cutting Measures?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

As Australians tighten their belts in the face of rising living costs, life insurance is rapidly being placed on the chopping block.
The Council of Australian Life Insurers (CALI) reports that individuals are more likely to reduce life cover rather than home or car insurance.

Recent findings indicate a significant disparity between those holding different types of insurances. Approximately 79% of the population has motor insurance, yet only 34% have life insurance according to the independent research conducted by the council.

The survey, which examined the behaviors of 5,000 people, highlights a particularly stark gap among individuals aged 55 to 64. More than 80% maintain motor or home insurance, but a mere 29% have acquired life insurance. Age groups 35-54 show that 38% hold life cover whereas this number drops to 32% for younger adults.

Interestingly, working Australians are three times more likely to drop their life insurance as compared to home or car policies, underlining a trend that could have long-term financial ramifications. Additionally, about 50% of those surveyed suggest they would stop superannuation contributions if it meant reducing expenses.

According to CALI CEO Christine Cupitt, the situation accentuates the “advice accessibility crisis in this country.” She explained, "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."

Cupitt stresses the importance of receiving proper financial guidance, stating, “Getting the right advice can set them up for the future, getting no advice can leave them with nothing to fall back on when times get tough.”

Despite recognizing the importance of advice, over 40% of respondents expressed a desire for customized financial guidance. This need could potentially be met through tranche two of the federal government’s Delivering Better Financial Outcomes reforms, designed to bridge this gap.

This push for enhanced financial advice platforms underscores a larger narrative about the necessity for accessible, affordable advisory services, especially during challenging economic climates. According to the original report covered by the Council of Australian Life Insurers, ensuring Australians are adequately insured and advised is essential.

Published:Tuesday, 3rd Dec 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Escalating Claims Costs Impact Trucking Insurance in Australia
Escalating Claims Costs Impact Trucking Insurance in Australia
25 May 2026: Paige Estritori
The Australian trucking industry is currently grappling with a significant rise in insurance claims costs, leading to increased premiums and prompting operators to reassess their risk management strategies. This trend mirrors global patterns where the financial repercussions of truck accidents have intensified over the past decade. - read more
Human Error Identified as Primary Factor in Major Truck Accidents
Human Error Identified as Primary Factor in Major Truck Accidents
25 May 2026: Paige Estritori
A recent report backed by National Transport Insurance (NTI) has identified human error as the predominant cause of major truck accidents in Australia. The findings underscore the critical need for enhanced driver training and the implementation of comprehensive safety measures within the transport industry. - read more
HESTA Announces 12% Reduction in Insurance Fees for Members
HESTA Announces 12% Reduction in Insurance Fees for Members
25 May 2026: Paige Estritori
HESTA, a prominent superannuation fund in Australia, has unveiled a significant reduction in insurance fees, averaging 12% across all cover types. This initiative, effective from 1 July 2026, aims to provide more accessible and affordable insurance options for its members, including those in the trades sector. - read more
Suncorp's AU$2.4 Billion Reinsurance Deal Strengthens Financial Outlook
Suncorp's AU$2.4 Billion Reinsurance Deal Strengthens Financial Outlook
25 May 2026: Paige Estritori
Suncorp, a leading Australian general insurer, has secured a substantial reinsurance agreement valued at up to AU$2.4 billion over five years. This strategic move has positively impacted the company's fiscal 2026 growth outlook, resulting in a notable 10% increase in share value. - read more
Zurich's AU$415 Million Acquisition of ClearView Signals Market Consolidation
Zurich's AU$415 Million Acquisition of ClearView Signals Market Consolidation
25 May 2026: Paige Estritori
Zurich Financial Services has announced its agreement to acquire ClearView Wealth, a listed life insurer, for approximately AU$415 million. This acquisition is part of a broader trend of consolidation within the Australian insurance market, following similar moves by other major players in the industry. - read more
Click for more Insurance News


Cyber Insurance Articles

Cyber Insurance 101: What Every Australian Business Owner Needs to Know
Cyber Insurance 101: What Every Australian Business Owner Needs to Know
Cyber insurance, also known as cyber liability insurance, is a type of coverage designed to protect businesses from the financial repercussions of cyber attacks and data breaches. As cyber threats become more sophisticated, the need for a safety net to mitigate the impact of such incidents has grown significantly. - read more
Data Breach Recovery: A Comprehensive Guide for Australian Businesses
Data Breach Recovery: A Comprehensive Guide for Australian Businesses
Data breaches have become a significant concern for businesses in today's digital landscape. Simply put, a data breach occurs when sensitive, protected, or confidential information is accessed, disclosed, or used without authorization. The implications of such breaches can be far-reaching, affecting not just financial health but also the reputation of businesses and the security of individuals involved. - read more
The Essential Guide to Cyber Insurance for Australian Small Businesses
The Essential Guide to Cyber Insurance for Australian Small Businesses
In the digital age, Australian small businesses find themselves navigating a world where online presence isn't just an advantage, it’s a necessity. With this increased online activity comes heightened vulnerability to cyber threats, making the protection of digital assets an urgent priority. - read more
The Essential Guide to Cyber Insurance for Australian Businesses
The Essential Guide to Cyber Insurance for Australian Businesses
Cyber insurance is a type of insurance designed to protect businesses from internet-based risks and, more generally, from risks relating to information technology infrastructure and activities. It covers losses related to data breaches, cyber extortion, and other kinds of cyber attacks. - read more
Cyber Security Essentials: Steps to Secure Your Online Business in Australia
Cyber Security Essentials: Steps to Secure Your Online Business in Australia
As the digital economy flourishes, Australian businesses are enjoying the fruits of their own cyber-infrastructure but are also becoming increasingly susceptible to cyber threats. The era of the internet has ushered in a wave of new opportunities, yet it also demands vigilance in the face of growing cyber risks. With cyberattacks becoming more sophisticated and frequent, the imperative for robust cyber security measures has never been more pronounced. - read more

Knowledgebase
Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.

Quick Links: | Cyber Insurance | Business Cyber Insurance | Cyber Liability Insurance | Small Business Cyber Insurance | Cyber Risk Insurance | Commercial Cyber Insurance | Cyber Security Insurance | Data Breach Insurance | Cyber Attack Insurance | Cyber Insurance Coverage | Cyber Insurance Policy
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.