Life insurance awareness on the rise

01-Feb-2017

By Daniel Paperny

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Consumer awareness of the benefits of different life insurance products was steadily growing as attitudes towards insurance evolved, according to new findings from independent research firm Pureprofile and life insurer NobleOak.

The “Most likely life cover” study looked at the total number of life insurance schemes available to Australians, as well as purchasing habits and general traction among Australian consumers.

In a survey of 1000 adults, the study found that while life insurance was the most common type of cover to have been purchased by respondents (59.4 per cent), income protection insurance (43.7 per cent) was not far behind.

Almost one in two respondents (45.3 per cent) said they had total and permanent disability cover in place, and more than one in five (21.5 per cent) had trauma cover.

Yet the survey also found over one in four (25.3 per cent) respondents said they had none of the above.

NobleOak chief executive Anthony Brown said the results of the survey overall should be regarded as positive, particularly as Australians were increasingly aware of the value of taking out life insurance cover.

“The results show that the awareness of different life insurance cover types appears to be improving as the types of cover people are most likely to have in place is relatively wide,” Brown said.

“[This was important] especially considering over 43 per cent of respondents are likely to have income protection cover in place.”

The survey also identified a noticeable trend in buying behaviour where Australians now commonly had multiple types of life insurance in place, which mirrored findings from a previous study conducted by the insurer last year.

Commenting on the study at the time, Brown said that while technology had a limited impact on changing consumer interactions with their life insurance provider, that was expected to change due to an evolution in consumer buying behaviour.

“Life and income protection insurance up until now seemed largely immune from the impacts of consumer-facing technology,” he said.

“However, [Australians’] very strong intention to purchase these life and income protection products online in the future shows an imminent behavioural transformation.”

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