New research reveals Australians’ growing focus on life insurance amidst knowledge gaps
Anthony Brown
Trusted direct Australian life insurer, NobleOak, launches its annual NobleOak Life Insurance Pulse Report, finding that more Australians are prioritising life insurance, even as they report a gap in understanding key life insurance terminology.
Continuing NobleOak’s mission to demonstrate the link between life insurance and financial happiness, the research[1] found more Australians are prioritising life insurance, with two in five (60%) now holding some form of coverage, an increase from 55% last year.
Meanwhile Australians are reporting increased financial security, with more than three in four (76%) feeling in control of their personal finances and their ability to cover an unexpected expense. Despite this, the research uncovered some key life insurance knowledge gaps: Only 30% of Australians are confident in their knowledge of “fully underwritten” policies despite half of these respondents holding a life insurance product. Among those familiar with the term, 44% consider it very important, and 54% view it as somewhat important.
NobleOak Director & Chief Executive Officer, Anthony Brown, said: “The NobleOak Pulse Report provides a valuable annual pulse check on Australian attitudes toward financial security and wellbeing. This year’s report found life insurance has now become a priority purchase for many Australians, outranking education, mobile phone use, some grocery purchases, and gym memberships and holidays. This shift reflects the growing trend for Australians to invest in the future of their loved ones to feel financially secure.
It is worrying however to discover that the general understanding of the benefit of a fully underwritten life insurance policy is low, given we believe that fully underwritten cover provides customers with more peace of mind, particularly at time of claim. That’s why we only provide fully underwritten cover at NobleOak.”
For the first time since NobleOak’s Pulse Report launched in 2016, Australians are also reporting their highest happiness levels in almost a decade, with three in four (75%) rating their happiness a 7 out of 10, and more than one in five (22%) a 9 out of 10.
Australians are approaching financial planning with greater confidence, despite cost-of-living pressures. The report also reveals a growing awareness around the value of life insurance, particularly regarding claims payouts and overall reliability. Australians are becoming more selective about their insurers, focusing not only on price but also on reputation and the ability to provide quality, reliable service.
“At NobleOak, we combine these insights with deep expertise and a life insurance brand you can trust to offer products that are not just about protection but also about giving Australians the knowledge and confidence to take control of their financial futures.”
- More than two in five (23%) of life insurance policyholders believe they don’t have enough coverage for their needs.
- Use of financial advisers/brokers for financial needs has now returned to pre-COVID levels (32%), though advice is focused on superannuation and retirement planning or investment plans over life insurance.
- Those in the medical profession feel more financially insecure than tradespeople, at 37% and 23% respectively.
- Women report lower levels of financial confidence compared with men (28% vs 20%).
Brown concludes: “The research reveals an opportunity to educate Australians on the value of fully underwritten life insurance for a more confident claims experience. Noble Oak has a 98.8% life cover claims payout rate against a direct life industry average of 91.1% for life cover claims[2]. We want to be there for Australians when they need us most, in the event of a claim.”
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