Almost nine in 10 Australian parents feel that life insurance is important, according to the Real Insurance Family Protection Survey released last month. Still, only a third (33.2%) of respondents say they feel confident they have sufficient life insurance cover for their needs.
Close to three in 10 (29.0%) say they have cover but are unsure if it is enough for their needs or are unsure if they have cover at all. Close to two in five (37.8%) admit to not having any life insurance cover.
Three in 10 admit their family would be financially burdened if they were to pass away, and one in eight have experienced previous financial burden as a result of a loved one passing away with insufficient or no life insurance cover.
"It is widely known that Australians don't take out adequate levels of insurance to protect themselves and their family, with underinsurance remaining an issue and a drain on the public purse," Real Insurance said.
Among respondents who are sure they have life insurance cover, 50.2% say they purchased this through their superannuation, while one in nine (11.9%) purchased it through a financial adviser. Close to two in five (37.9%) purchased their life insurance cover directly.
Real Insurance found consumers who buy insurance directly, rather than through financial advisers, have the highest levels of satisfaction.
Many of the parents polled claim they would be encouraged to take up life insurance if it was more affordable. Easy-to-understand policies and some support in working out the best policy are also likely to encourage greater take-up.
The data was based on a survey of 1,000 Australian parents across the country in April 2017.