Australians worry about protecting their family

Peter Terlato 23 May 2017

Family walking

Not many parents have sufficient life insurance policies.

A new study has discovered Australian parents constantly worry about properly protecting their family, whether it be against injury or death, bullying and harassment, or the security of their financial future.

Real Insurance's Family Protection Survey 2017 explored what parents would do to safeguard their family.

Four in five (80.4%) Australians admit to being anxious about protecting their family. While half (49.9%) of respondents spent less than 30 minutes each day worrying, one quarter (24.9%) of Australians said they spent an hour or more each day anguishing over how they can improve their family's health and safety.

While most (90%) parents remember to lock their doors at all times and enforce rules for their children about answering the door or phone (84.5%), the majority (56.6%) of respondents still have not set a will, and two in five parents haven't selected caretakers for their children in the event of their death (40.4%).

Despite their worriment, the majority (66.8%) of Australian parents either do not have life insurance (37.8%) or possess cover that is insufficient to cope with their family's growing needs (29%).

The survey found Victorian residents (40.1%) were the most confident that their life insurance cover could adequately support their family's future. Parents in New South Wales (28.8%) were the most troubled.

The overwhelming majority (91.3%) of Australians with life insurance say having these policies gives them "some peace of mind". More than one third (35.6%) say it provides them "peace of mind" to a large extent.

So, what's stopping Aussies from purchasing life insurance?

Many respondents say they would likely or very likely take up it up if it was more affordable (77.9%) or if policies were easier to understand (72.7%). They are also likely or very likely to get life insurance if they have the support to interpret the best policy for their needs (72.4%) or they find a brand they trust (72%).

However, finding an insurer that won't look for creative ways to turn down a claim can be difficult. A new program developed by regulatory authorities APRA and ASIC will improve transparency for consumers by collecting and publishing data on a per-insurer basis, including claim handling times and dispute levels.

Additionally, it turns out you can learn a lot about someone's lifespan by analysing their selfie.

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Picture: Shutterstock

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