People with life insurance are more likely to have a positive view of their overall financial wellbeing, compared to those without, BT’s Australian Financial Health Index has revealed.
The Index surveyed nearly 5,000 Australians about their feelings towards their finances, and found that 56% of respondents with life insurance rated themselves in the ‘high score’ category on the financial wellbeing scale. This was compared with only 45% of respondents without life insurance.
Women with life insurance were noticeably more confident about their financial situation than those who held no cover, with 52% of insured women giving themselves a high score rating (versus 39% of un-insured). When children were factored into the equation, once again the survey found that those with insurance were more positive (56%) than those without (43%).
BT’s Head of Life Insurance, Phil Hay, said one of the reasons for the difference in perception was the peace of mind that insurance provides.
“As we all know, life is very good at throwing curve-balls. For those who have prepared for the future and obtained cover, life insurance can take the stress out of thinking about those ‘what if’ scenarios,” Mr Hay said.
“When you look at how many more people have general insurance compared with life insurance, it seems many of us seem more concerned about insuring our car than making sure our families are OK, should the unexpected happen.”
When those without insurance were asked to specify why they had not taken out life cover, the most common reasons cited were:
Cost or lack of perceived value
Lack of understanding of why they would need it
Life insurance is not something they think about spending money on
Original article appeared in Riskinfo.com.au on 15/07/2013