A survey of AMP planners has revealed that financial advisers believe a lack of consumer awareness about the need for trauma insurance is the primary issue impacting the trauma insurance take-up rate in Australia.
170 financial advisers responded to the AMP Planner Protection Poll, which asked them to rate the specific improvements that could lead to an increase in trauma insurance take-up among Australian consumers.
47% of survey respondents believed an increase in awareness of the need for trauma insurance was the most important improvement that could be made to increase insurance take-up,while 43.5% said that price was the primary factor deterring consumers from taking out trauma.
AMP’s Director Wealth Protection Products Michael Paff, said many Australians remain unaware of the importance of trauma insurance.
“Many people don’t plan for [the] worst-case scenario, they either don’t think about it, believe it won’t happen to them or they seriously underestimate the true cost associated with a serious illness or accident,” Mr Paff said.
“Financial stress can be another deterrent to trauma uptake. While trying to manage budgets, people sometimes see personal insurance as a cost that can be cut. While intending to reduce their financial vulnerability, they actually inadvertently increase it,” Mr Paff added.
In response to the question: “Are trauma products in Australia too complex?” 56.5% of respondents said no, while 43.5% believed that complexity was an issue.
“Sadly, personal insurance is still one of the most neglected aspects of the average person’s financial planning,” said Mr Paff.
“Financial planners have a crucial role to play in educating people about the value of protecting themselves against sudden illness or injury.”
