The Value of Life Insurance (VOLI) report found that within MetLife’s retail business, 60 per cent of policies are held by men, with women accounting for only 40 per cent.
Among Australia’s 23.2 million superannuation accounts, there is also a 60/40 male/female split, meaning there is a gender gap in access to insurance inside superannuation, the most common platform through which most Australians can afford to hold insurance.
Among women who have been advised, 82 per cent agree that current financial conditions have increased the need for them to feel more financially secure, while 93 per cent agree that having adequate life insurance is an important part of being financially secure. Despite this, 31 per cent of women suspect they probably don’t have enough life insurance.
Nine in 10 (89 per cent) females trust their financial adviser to help them make informed decisions about their life insurance, while 78 per cent agree they have a good understanding of what they’re covered for with the life insurance they hold.
Eighty-seven per cent trust their financial adviser to help them understand how much life insurance they need, and 94 per cent agree it’s important that life insurance provides comprehensive cover, rather than minimal cover.
The report also found that the average age of women making cancer-related claims, ranging from death claims, income protection, terminal illness, TPD and trauma, were all between one and four years on average younger than men. The average age of women claiming mental illness income protection is age 46.
The report found that legislative changes to end default insurance cover for younger super fund members and those with lower balances or inactive accounts may have unintentionally disadvantaged young women and people living with a disability, who are statistically more likely to fall into these categories.
Wendy Tse, chief of staff, strategy and external affairs at MetLife Australia, said, “Our industry is reaching an important juncture. Increasing household financial pressures and cost of advice will likely see many Australians risk life without insurance, exacerbating Australia’s underinsurance problem. The lack of financial literacy is a contributor to this, as people fail to see the value of life insurance.
“We’ve shown that financial wellness and general wellbeing are inextricably linked. Action is needed to ensure Australians, especially the vulnerable, are able to weather the future economic pressures and make informed decisions on the protection of their lives. Insurance is about preserving a way of life, not only a means to [protect] against an adverse event.”
