AdviserVoiceKids more likely to have life insurance than baby boomer parents https://www.adviservoice.com.au/2013/04/kids-more-likely-to-have-life-insurance-than-baby-boomer-parents/ Financial planner information & financial planner education/CPD - AdviserVoice Thu, 04 Jun 2026 21:30:42 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Kids more likely to have life insurance than baby boomer parents https://www.adviservoice.com.au/2013/04/kids-more-likely-to-have-life-insurance-than-baby-boomer-parents/ https://www.adviservoice.com.au/2013/04/kids-more-likely-to-have-life-insurance-than-baby-boomer-parents/#respond Mon, 01 Apr 2013 20:45:04 +0000 https://adviservoice.com.au/?p=20151 While popular perception is that Gen Ys are financially irresponsible and only concerned with living for the moment, new research suggests that they may actually be more clued up about the life insurance they hold than their parents.
 
This is one of the latest findings from the ongoing financial protection research1 by TAL, Australia’s leading specialist life insurer, and follows the release earlier this year of the inaugural Australian Financial Protection Index.
 
The research found that 43% of young Australians (Gen Y aged 25 to 34) say they have at least one form of life space insurance2, a collective term for life, disability, income protection, and critical illness/trauma insurance.
 
Meanwhile, only 31% of baby boomers (aged 50 to 65) believe they have at least one form of life space insurance. The group who were most likely to say they have some life space cover were those aged 35 to 49 years (Gen X), at 44%.
 
However, TAL Managing Director Jim Minto believes the figures should be higher, particularly among baby boomers because they simply don’t realise they have insurance. This is because most people with super will have some level of cover automatically included in their fund.
 
“I’m pleased that life space insurance is on the radar for so many Gen Ys. But I’m also surprised by these results because I believe the actual proportion of Australians who hold some sort of life space insurance is much higher, especially for the baby boomers. This suggests that there are many people out there who have at least some level of life space cover but don’t realise it. We need to overcome the ignorance.”
 
“It’s really important that people check with their super funds to see if they have some form of life insurance through their fund membership. Even if you haven’t paid into your fund for a long time, you may still have some coverage. Younger people appear to be more attuned to their super and life cover than they have been given credit for.”
 
“The next question people really need to ask themselves is whether the life insurance they have is enough in the event they could no longer work. Research shows that people who rely on default levels of cover automatically offered through their super fund are unlikely to have sufficient cover should the worse happen.
 
“We’re encouraging all adult Australians to firstly find out if they have cover, and then investigate if it’s enough. A financial adviser can help them figure this out.”

Mr Minto added: “As a nation, we are just not insured enough. We know that the lack of financial protection costs taxpayers $1.5b a year on social welfare support3, let alone the emotional and psychological effects of losing financial security.”
 
Nationally, according to the TAL research, 37% of people indicated they believe they have some form of life space insurance, with Queensland having the highest penetration at 40% compared to South Australia at just 31%.
 
Other key findings:

  • Men are more likely than women to say they hold life and other associated insurance products (41% versus 33%).
  • Within life space insurance, men are significantly more likely than women to report they have disability insurance (13% versus 8%) and income protection insurance (22% versus 13%).
  • Parents of children under the age of 18 years are also the most likely to say they have life space insurance (46%) compared to those with older children (36%) and those without any children living at home (32%).
]]> While popular perception is that Gen Ys are financially irresponsible and only concerned with living for the moment, new research suggests that they may actually be more clued up about the life insurance they hold than their parents.
 
This is one of the latest findings from the ongoing financial protection research1 by TAL, Australia’s leading specialist life insurer, and follows the release earlier this year of the inaugural Australian Financial Protection Index.
 
The research found that 43% of young Australians (Gen Y aged 25 to 34) say they have at least one form of life space insurance2, a collective term for life, disability, income protection, and critical illness/trauma insurance.
 
Meanwhile, only 31% of baby boomers (aged 50 to 65) believe they have at least one form of life space insurance. The group who were most likely to say they have some life space cover were those aged 35 to 49 years (Gen X), at 44%.
 
However, TAL Managing Director Jim Minto believes the figures should be higher, particularly among baby boomers because they simply don’t realise they have insurance. This is because most people with super will have some level of cover automatically included in their fund.
 
“I’m pleased that life space insurance is on the radar for so many Gen Ys. But I’m also surprised by these results because I believe the actual proportion of Australians who hold some sort of life space insurance is much higher, especially for the baby boomers. This suggests that there are many people out there who have at least some level of life space cover but don’t realise it. We need to overcome the ignorance.”
 
“It’s really important that people check with their super funds to see if they have some form of life insurance through their fund membership. Even if you haven’t paid into your fund for a long time, you may still have some coverage. Younger people appear to be more attuned to their super and life cover than they have been given credit for.”
 
“The next question people really need to ask themselves is whether the life insurance they have is enough in the event they could no longer work. Research shows that people who rely on default levels of cover automatically offered through their super fund are unlikely to have sufficient cover should the worse happen.
 
“We’re encouraging all adult Australians to firstly find out if they have cover, and then investigate if it’s enough. A financial adviser can help them figure this out.”

Mr Minto added: “As a nation, we are just not insured enough. We know that the lack of financial protection costs taxpayers $1.5b a year on social welfare support3, let alone the emotional and psychological effects of losing financial security.”
 
Nationally, according to the TAL research, 37% of people indicated they believe they have some form of life space insurance, with Queensland having the highest penetration at 40% compared to South Australia at just 31%.
 
Other key findings:

  • Men are more likely than women to say they hold life and other associated insurance products (41% versus 33%).
  • Within life space insurance, men are significantly more likely than women to report they have disability insurance (13% versus 8%) and income protection insurance (22% versus 13%).
  • Parents of children under the age of 18 years are also the most likely to say they have life space insurance (46%) compared to those with older children (36%) and those without any children living at home (32%).

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