People who hold life insurance tend to feel more in control of their financial future, according to a survey of 5,000 Australians conducted by BT.
The BT Australian Financial Health Index found 56 per cent of respondents with life insurance rated themselves in a high category of a financial wellbeing scale, compared to 45 per cent of those without life insurance.
Women tended to rate their financial wellbeing less highly overall, but those with life insurance were similarly ahead of those without. Fifty-two per cent of women with life insurance recorded high wellbeing compared with 39 per cent of women without.
“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,” head of BT life insurance Phil Hay said in a statement.
The perceived cost of life insurance holds many people back from including it as part of their plans, BT stated.
“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,” Mr Hay said.
“It’s important to remember that life insurance protects those who depend on your pay cheque, whether that’s your partner, children or even your parents in the event that it’s no longer available.
“We all need to plan for life’s events; unfortunately, too many people don’t realise the importance of life insurance until it’s far too late.”
Written by a staff reporter in InvestorDaily.