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New insurance comparison service Choosi (www.choosi.com.au) launches today by releasing independent research that highlights the substantial life insurance gap in Australia. The study revealed that 57 per cent of people don’t have life insurance and even those that are currently covered, nearly two thirds (64 per cent) don’t feel they have adequate protection. Overall this means that 85 per cent of people across the country have a life insurance problem.
Worryingly one in four people (26 per cent) who have a mortgage and/or dependents don’t have any life insurance cover, potentially leaving them and their families exposed. By encouraging transparent competition Choosi aims to provide Australians with a free comprehensive and competitive selection of insurance policies all in one place - saving people time and money.
According to the nationwide survey, which looked at drivers and barriers to people taking out life insurance, despite the majority of us not having life insurance or the right cover, nearly half of Australians (48 per cent) believe that life insurance is important or very important to have. This demonstrates a significant disconnect in society.
The research exposes confusion around superannuation with many Australians believing it offers enough life insurance – the reality is that for the majority of people superannuation life insurance is inadequate. The main issues people have with purchasing life insurance include finding the insurance terms “difficult to understand” (40 per cent), “confusing” (42.6 per cent) or that they are unsure which policy would cover their needs (28 per cent)
Shaun Cornelius, Managing Director at Choosi says, “Australia has a significant under-insurance problem, for life insurance alone it is estimated to be worth $7,700 billion. Even for those that are covered, the overwhelming majority don’t have enough life insurance cover. As our survey demonstrates people find researching and purchasing life insurance difficult and confusing. Because of this many Aussies choose to ignore it, which could potentially leave their families exposed should the worst happen.”
When asked why people haven’t taken out life insurance the responses revealed that:
· 33.7 per cent say they simply can’t afford it.
· 24.5 per cent finding it “irrelevant” to them.
· 19.5 per cent saying that they “haven’t thought about it”. The process of purchasing life insurance is also seen as time consuming. Of those that are currently covered, nearly one third (32 per cent) of people took between two weeks and a month to research the appropriate life insurance policy. An incredible 21 per cent took between a month and a year.
Mr Cornelius continues, “Since affordability is the number one reason for not taking out life insurance it’s important that Australians shop around to ensure they get good value. Choosi helps people review and compare from 16 life insurance products in one place. Choosi is the starting point for choosing life insurance; we do the research for you by comparing a comprehensive and competitive selection of insurance policies. We then offer relevant, simple and down-to-earth information so you can make a smart choice about life insurance cover.”
Interestingly more men have life insurance cover than women. Almost half of men are covered (47 per cent), compared to just 39 per cent of their female counterparts. The study also showed that men believe life insurance is more important than women with 50.3 per cent believing it to be important or very important, compared to only 45 per cent of women.
Other findings from the research highlighted sizeable discrepancies among the states and territories. People in South Australia and the Australian Capital Territory proved the most life insurance savvy with half of the population covered, compared to their Tasmanian and Queensland counterparts who were least likely to have life insurance (38 per cent and 39 per cent respectively).
Choosi is a comparison service that helps Australians compare, select and choose an insurance policy from initial research to final transaction.
The research
The research interviewed 1,010 people across Australia in July 2011.
About The Author:
CHOOSi is a comparison service that helps Australians compare, select and choose an insurance policy – from initial research to final transaction. Choosi is the better way to choose insurance – giving you the tools and information to find the right cover that suits you, and your budget. Visit www.choosi.com.au for more details.
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