Life cover is increasingly becoming a key part of Australian’s financial strategy according to the 2025 Life Insurance Pulse Report published by NobleOak.
The firm’s annual study shows 60% of Australians now have some form of life cover – up from 55% last year.
Despite the growth, the report highlights gaps in public understanding with just one third of respondents apparently knowing what a fully underwritten life insurance policy offers. Yet, among those who are familiar with the term, 98% said it was an important consideration.
This shift reflects the growing trend for Australians to invest in the future…
NobleOak CEO Anthony Brown said the findings underline the need for better education around insurance products.
“This year’s report found life insurance has now become a priority purchase for many Australians, outranking education, mobile phone use, some grocery purchases, gym memberships and holidays,” he said.
However, he said it is worrying the general understanding of a fully underwritten life insurance policy is low.
The report also shows increasing financial confidence, with 76% of Australians saying they feel in control of their finances.
Still, nearly one in four (23%) believe they don’t have enough life cover, with women more likely than men to report lower financial confidence.
Key findings of the report include:
- 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%)
The report also found people are relying less on advice from family and friends when it comes to life insurance. However, younger age groups tend to be a little more reliant on friends and family for recommendations than the older audiences.
The report concludes that trust in insurers, especially regarding claims reputation and policy value, continues to be a key factor when choosing coverage, with many Australians prioritising these aspects over cost alone.
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 75% rating their happiness at seven out of 10.
NobleOak also reported it has a 98.8% claims payout rate.
