{"id":75432,"date":"2025-01-28T10:32:12","date_gmt":"2025-01-27T23:32:12","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=75432"},"modified":"2025-01-31T12:07:24","modified_gmt":"2025-01-31T01:07:24","slug":"seven-factors-driving-life-insurance-cancellations","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/01\/28\/seven-factors-driving-life-insurance-cancellations\/","title":{"rendered":"Seven Factors Driving Life Insurance Cancellations"},"content":{"rendered":"

Cost-of-living pressures and higher premiums, coupled with demographic and health changes, have left many Australians to re-evaluate their life insurance, according to iExtend<\/a>.<\/p>\n

The firm’s CEO, David Sarkis, <\/strong>says more Australians are wavering on whether to keep their life insurance cover:<\/p>\n

\u201cAs a result of a range of financial and demographic pressures, we have seen more Australians change their view of their life insurance and are seeking to cancel it,\u201d he says.<\/p>\n

\"\"<\/a>
David Sarkis<\/figcaption><\/figure>\n

Citing data from the Council of Australian Life Insurers, Sarkis says 68% of Australians are worried about paying for life insurance. In comparison, 23% of policyholders would consider cancelling their life cover if affordability were to become an issue.<\/p>\n

\u201cThe impact the cost of living is having on life insurance cannot be underestimated, with many Australian households feeling the pressure of daily life, leading them to consider cancelling their policies to alleviate the immediate burden of meeting premium payments,\u201d says Sarkis.<\/p>\n

According to iExtend, the seven key factors driving policy cancellations are:<\/p>\n

    \n
  1. Life premiums are expected to increase by 1.5% in 2025<\/li>\n
  2. Increased prevalence of chronic health conditions<\/li>\n
  3. Aging population<\/li>\n
  4. Cost-of-living \u2013 The monthly Consumer Price Index (CPI) indicator rose 2.3% in the 12 months to November 2024<\/li>\n
  5. Intergenerational wealth transfer will drive decisions around life insurance<\/li>\n
  6. Property and business sales (reducing the need for life cover)<\/li>\n
  7. Accessibility to advice challenge<\/li>\n<\/ol>\n

    \u201ciExtend is working with advisers and their clients to ensure they make informed choices about the future of their life insurance policies,\u201d says Sarkis.<\/p>\n

    The options for policy retention will be one of the many key topics discussed at the Riskinfocus 25<\/a> events in March.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Cost-of-living pressures and higher premiums, coupled with demographic and health changes, have left many Australians to re-evaluate their life insurance, according to iExtend. The firm’s CEO, David Sarkis, says more Australians are wavering on whether to keep their life insurance cover: \u201cAs a result of a range of financial and demographic pressures, we have seen […]<\/p>\n","protected":false},"author":23,"featured_media":75435,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,4587,3],"tags":[],"class_list":{"0":"post-75432","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-company-news","8":"category-estate-planning","9":"category-general"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/75432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=75432"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/75432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/75435"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=75432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=75432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=75432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}