Aussies aged between 18 and 34 have an increased appetite for life insurance, a recent study by TAL Life Insurance Specialist has shown.
TAL Group CEO Jim Minto said that a more risk sensitive climate like post GFC worries could have influenced young people to look towards various life insurance options that can “support them across various personal risk situations, so that they can continue paying their debts and plans and dreams for the future.”
While more Gen Yers are taking out life insurance, the study found older generations’ index scores are decreasing. “Increased uptake of life protection among younger generations is heartening. However, the fact remains that the overall index score overall nationally is still very low reflecting that most people do not have enough insurance to cover their needs,” Minto said.
“Financial protection has an integral role to play in the life of virtually every Australian but as a nation we have much work to do to better inform people and close the protection gap.”
Another issue that arose from the study was despite the gains of life insurance take out amongst younger people, many Aussies do not fully understand the benefits of life-related insurances or aren’t taking the next step to get the full amount of protection they need.
“Clearly we still have a way to go before Australians understand that life insurance is a highly effective way of protecting assets such as the family home, covering other debts – including credit card debt – as well as safeguarding aspirations such as lifestyle and extra supports for children including education.”
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