In a poll conducted by TAL, it appeared that majority of Australians do not prioritize life insurance. They would choose to grow their savings than to improve their life insurance policies.
TAL’s chief executive Jim Minto said with GCF still the consumers’ priority, it is clear that there is deleveraging going on. The result of the poll showed the following highlight:
- About 95% of Australian families are under insured.
- About 50% of the respondents said they would give their savings more priority in case they’d get a 10% income increase.
- Other answers were to pay off bills (30%), to increase mortgage repayments (28%), and to pay off personal or credit card debts (25%).
- Some respondents opted for holiday funding (28%) while 14% said they would upgrade their car.
- More frequent dinner date was the answer given by about 8%.
Meanwhile, in the Generation Y respondents, 7% said they would take out a policy or upgrade a personal insurance such as income, disability, life or illness. There was 4% of the same answer from Generation X and 3% from baby boomers.