Underinsurance in Australia

Uptake of insurance in Australia

The research confirmed other studies that show Australians are significantly underinsured when it comes to life insurance and income protection insurance. Uptake ratios for life and income protection insurance fall well below those for car/home and health insurances.

Q. Which of the following types of insurance do you currently have?

Figure 1 - proportion of respondents with different types of insurance

While some respondents hold life and income insurance within super, between half and two-thirds of these people accepted the default level of insurance which is typically very low.

Uptake of life insurance is higher among:

• Males and females aged 40-54 and non-singles
• Those with a mortgage and households with a pre-tax income of $125,000 or higher

Uptake of income protection insurance is higher among:

• Males and females aged under 55
• Those with a mortgage and households with a pre-tax income of $125,000 or higher

Next: Coping without Life Insurance >