Young people under the age of 25 have been leading the pack in choosing to take out life insurance cover, according to new consumer research findings.
The survey, undertaken by Australia’s life insurance specialist TAL, demonstrates that Generation Y are far more likely to independently choose to have life insurance in comparison to the average across all generations.
Without being prompted, 48% of under 25s chose to get life insurance, as opposed to the average of 39%.
They are also using technology to seek out the services and products that meet their needs.
TAL Group CEO Jim Minto says that contrary to past beliefs, this shows financial affairs are important to the younger generations.
“These results reveal that more of our youngest adults are ‘making their own decision’ to take out life insurance at a higher rate than older generations, which shows they are more engaged with their financial affairs than they have been given credit for in the past,” he says.
The survey aims to reveal consumer behaviour towards financial protection and planning attitudes and the motivations for taking out life insurance cover.
The primary reason Australians chose to protect themselves was that they made their own independent decision without being prompted, according to the research.
But there were a variety of other important motivations that highlighted differences in consumer behaviour.
Almost one in five people (19%) in the national poll took out life insurance after prompting from a financial adviser, while 32% said it was already part of their superannuation cover.
Other reasons included hearing about a friend or family member whose life insurance had saved them or their family from financial hardship after an injury, illness, disability, or death, a discussion with partner or family, and a workplace recommendation.
Minto says that this kind of financial protection should not be seen as a taboo topic.
“Let’s face it, life insurance has traditionally been something many people would rather not think about, even though they should. Hearing how life insurance can help financially in a time of need is a compelling reason to ensure protection is in place.”
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