Advice unaffordable for families, says insurer

An insurer suggests there will be ongoing demand for direct life insurance as financial advice is out of reach for a significant number of Australian families.

Real Insurance founder Richard Enthoven said in a statement that direct life insurance makes cover accessible to families who otherwise would be uncovered as “not all Australians can afford or need financial advice”.

He cited Roy Morgan data, which he said “shows that the channel used to purchase insurance has a strong correlation with satisfaction levels”.

“Given developments in technology, Australians are becoming increasingly confident about doing things themselves that they previously couldn’t do, like researching life insurance online and then purchasing it directly,” Mr Enthoven said.

According to Real Insurance’s Family Protection Survey, around 38 per cent of respondents said they don’t have any life insurance, while just over 22 per cent said they don’t feel confident that the insurance they have is enough for their needs.

In addition, around 40 per cent of respondents said they have not chosen caretakers for their children in the event of their death, while just over 56 per cent said they have not set a will.

The CoreData-conducted survey asked 1,000 Australian parents in April 2017 about the methods they use to protect their families.

Two hundred respondents were surveyed each from NSW, Victoria, Queensland and Western Australia, while the remaining 200 came from the remaining states and territories.

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