BABY BOOMERS LAG BEHIND GEN X AND Y WHEN IT COMES TO LIFE INSURANCE
SPECIALIST life insurance company TAL commissioned Galaxy Research to conduct a survey among 1,260 individuals in Australia from the ages of 18 to 69 years to gauge their ongoing level of financial protection. According to the survey, 44% of Generation X individuals – aged between 35 and 49 years old – have one form of life, disability, income protection and critical illness or trauma insurance. This stands in contrast to:
25% of individuals aged between 18 and 24 43% of Generation Y individuals (aged between 25 and 34 years), and
31% of baby boomers (aged between 50 and 69 years). The survey also showed that parents of children under the age of 18 years are more likely to have some form of insurance compared to those with older children (36%) and those without any children (32%). According to the survey, 37% of respondents indicated that they have some form of life space insurance - with Queensland boasting the highest percentage at 40% compared to South Australia at just 31%. Meanwhile, men are more likely than women to hold life space insurance (41% versus 33%) especially when it comes to disability insurance (13% versus 8%) and income protection insurance (22% versus 13%). The TAL survey comes on the back of previous reports that expose Australians' unawareness of life insurance. A CommInsure life insurance study in 2011 showed that most Australians are unaware they can obtain life insurance through their superannuation fund, while wealth management firm Centric Wealth reported that there is a greater risk for self-managed superannuation fund trustees in being underinsured.