Having children is the primary trigger for taking out life insurance, a survey from Asteron has shown.
The study, which asked consumers to nominate the life event that would prompt them to take out life insurance and/or income protection, found that 51% of people with life insurance purchased the product because they had (or decided to have) children.
The other main triggers were:
- Taking out a mortgage (46%)
- Getting older (39%)
Asteron Life Executive Manager, Mark Vilo, said the research, combined with the fact that just 20% of Generation Y seek regular financial advice, proved that younger Australians were missing out on an opportunity to take greater control of their financial futures.
“The average age for Australians to have children is 31 and to buy a first home it’s 34. That means much of Generation Y are either experiencing or about to experience these life changing events”, he said.
“A little bit of planning can go a long way, and ensure life-changing experiences can be fully enjoyed without financial stress.”
Lifestyle coach and Asteron Life blogger, Tenar Roberts, suggested one way to position advice to younger clients is through a mid-year financial health check.
“Getting some financial advice specific to your lifestyle and values can go a long way in giving you a greater sense of control and freedom. It may give you greater confidence to pursue the things you really want like a family, home ownership or starting your own business,” Ms Roberts said.
