Australians insure their cars but not their lives

June 9th, 2010

Australians place a higher financial value on material assets like their cars and homes than on their own health and wellbeing, independent research has revealed.

The Lifebroker Life Insurance Report found that of those people significantly concerned about the risk of having their car stolen, 91 per cent had a relevant car insurance policy matching their level of concern.

In stark contrast, of those who were significantly concerned about the risk of a premature death from an accident or illness, only 43 per cent had taken out life insurance cover.

According to the lifebroker survey, the percentage of respondents who had relevant insurance corresponding to a significant concern about the risk of an event were:

Lifebroker said the results were a clear indication that there are obstacles in the way of consumers buying life insurance that don’t exist for home or income protection insurance.

“Obstacles to buying life insurance include a lack of trust in life insurers, misconceptions surrounding the actual and perceived costs of life insurance, and a lack of understanding about how life insurance works.” 

“Many Australians are also denying the potential impact an unexpected event could have on their quality of life, with a majority of Australians mistakenly believing they could maintain a high standard of living for up to six months if the main income earner died or was unable to work.”

“Another obstacle to buying life and income insurance is the invisibility of the risks they cover. While cars and homes are material objects with a visible presence that every day remind us of the risks of fire, theft and storm damage, our health and wellbeing is less tangible and can be easily overlooked.”

People need to think of their health and wellbeing as an asset equal to or more important than their cars and homes, and insure it accordingly”.