Allianz Australia has released the results of a survey of its life insurance customers.
The research, conducted externally, shows that ensuring the financial security of their loved ones in the event of death or disability was the reason 80% of respondents chose to take out life insurance.
63% said that one of their main concerns was ensuring the family mortgage would be paid if the unexpected happened. A further 28% said they wanted to ease the burden on loved ones and cover unplanned costs like funeral expenses.
Jonathan Poole, CEO of Allianz Australia Life Insurance said “Protecting number two, three and four, rather than ‘number one’, was of paramount importance to those surveyed.”
“The research clearly shows that life insurance is chosen for a mix of emotional and pragmatic reasons – to protect partners and children in case something tragic occurs. Looking after the family’s financial needs was the overwhelming reason for purchasing life insurance,” Mr Poole said.
Many of the respondents claimed there were significant barriers stopping them taking out the insurance they need, despite 94% considering the need for insurance ‘critical’ for families with young children.
Other findings include:
- 41% of respondents said they found the process of taking out life insurance difficult
- 25% said this process was confusing
- 42% generally did not trust life insurance companies to pay out on a claim
- Over 80% said they did not want to see a financial planner to take out life insurance
Allianz claims it is providing a solution to these barriers by enabling its customers to access life insurance using its online application process, which eliminates the need to see a financial planner. The main reasons given for choosing Allianz for life insurance were:
- Low premiums (64%)
- The ability to apply and buy online (57%)
- Because Allianz was a well-known and established company (52%)
Mr Poole explained “What many people do not realise is that the efficiency of the Internet means that life insurance, disability and critical illness protection is very affordable and easy to access these days.”
Mr Poole continued “There’s no need to see a financial planner or to have medical tests, and in just 12 minutes you can enjoy the peace of mind of knowing that your partner and children will be protected if something unforeseen occurs,” he said.
What a lot of rubbish in the above article. One of the biggest issues we have is people being underinsured and one of the main reasons for this is ignorance and lack of understanding. That’s where professional advice and guidance comes into play. The same occurs in the general insurance industry, no advice = poor cover/lack of cover… you get what you pay for. Maybe Allianz should focus on the quality of cover and amount of cover required rather than chepa, cheap cheap!!
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