Data from NobleOak’s Life Insurance Pulse Report highlighted that Australians are increasingly prioritising their financial future.
With the cost of living continuing to rise and 13 interest rate hikes since May 2022, the report showed that Australian families are looking for ways to feel secure in their finances.
According to the report, which surveyed 1,039 Australians aged 30–60 with a household income of $100,000 or higher, 41 per cent of respondents said they were concerned about their current financial situation and about one-third said they did not feel in full control of their financial situation.
The report showed a slight increase in consumers seeking financial advice in 2023 with 27 per cent of respondents accessing financial advisory services, bringing numbers closer to pre-pandemic and pre-royal commission, with 33 per cent accessing advice in 2017 to 2019.
This is compared with a steady decrease over 2020, 2021 and 2022, with 23 per cent, 22 per cent, and 20 per cent, respectively, engaging an adviser.
Among all respondents, 12 per cent specifically utilised financial advice to address their life insurance or income protection insurance. Over the previous three years, this figure sat around 5 per cent.
NobleOak director and chief executive Anthony Brown said he wanted to get Australians thinking about their financial situation and life insurance.
“The research underpinning the report shows us that Australians have a proactive mindset when it comes to their financial situation, but there is still a pressing need for improved financial literacy,” Mr Brown said.
Australians are also looking for ways to save money but are increasingly prioritising their life insurance as the findings show that they are now more likely to cut costs at the grocery store than reduce or cancel their life insurance cover.
From this, the report shows an increasing trend in Australians valuing their insurance and protecting themselves financially, even if it means cutting costs elsewhere which may be a reflection of the current financial climate in Australia, leaving many feeling the pinch as the cost of living increases.
“On a positive note, more people who currently hold life insurance are planning to renew this year than ever before. This is a trend which goes back to 2017, when 47 per cent of Australians mentioned they planned to renew, increasing every year to the current 65 per cent,” Mr Brown added.
