Category: Work

In a surprising reversal, recent research from NobleOak reveals that the previous two year trend where women were more likely to have Life Insurance is now not the case.

This finding is from the independent survey commissioned by NobleOak in December 2018, with around half of the people surveyed having Life Insurance in place.

When asked if respondents currently have some form of Life Insurance (including Life cover, TPD, Trauma) and/or Income Protection, 54% of women said yes, compared to 57% of men.

This compares to 67% of female respondents citing they had some form of cover in 2017 and 58% in 2016.

This is a surprising change to the previous two year trend where women were more likely to have Life Insurance but are now not giving as much priority to their financial security.

It is also concerning as women make up more than 50% of the Australian population and 47% of the workforce, either full time or part time. In addition, they account for almost three quarters of all unpaid work.

The research also found that people who classified their occupation as “Home Maker/Stay at home parent” were also less likely to have financial protection.

Only 47% of people in this occupation category had Life Insurance.

The percentage of stay at home parents and homemakers without some form of financial protection reduced from 55% in our 2016 survey to 47% in 2018. This trend is very concerning as people underestimate the importance of the home maker when it comes to the value of unpaid work.

For instance, if the stay-at-home parent was not there to perform important tasks, such as cooking, cleaning and child care, the other parent may have to pay someone else to do the duties, which could prove very costly, particularly over the longer term.

According to PwC, the value of unpaid childcare alone is estimated at $345 billion.

So while the stay-at-home partner may not think of his or her contribution as having financial value, it certainly does when you consider that to replace it would require significant funds. It’s important that couples consider this when looking into securing financial protection through insurance.

Unfortunately, accidents and illness happens and it does not discriminate between men and women.  Women need the financial protection and security that Life Insurance provides as much as men in the event an illness or a serious accident were to occur.

The research discovered 61% of women and 59% of men would rely on their savings to cope financially if they could not work with 35% and 24% respectively relying on friends and family for help.

If necessary, 36% of women would cut holidays first compared to 30% of men who would cut entertainment expenses first if they lost some or all of their income or financial support.

Not sure what type of cover you need?

If you’re not sure what type of cover you need and how much, you can use NobleOak’s online calculator. It only takes 5-10 minutes to complete and you’ll receive a personalised report at the end. And it’s free! Click here to start using the Life Insurance Calculator.

Source:

The research referred to was conducted independently by PureProfile in December 2018 from a survey completed by over 1,000 Australians.

What’s a woman really worth? The $345b value of unpaid work to Australia’s economy

With the internet now a leading source of Life Insurance advice, consumers are opting to sort out their own cover with the help of “Robo” tools.

Our research shows that 61.8% of respondents would use an online assessment calculator rather than using a financial adviser if they had the choice.

Other results include:

48.2% of Australians are not willing to pay anything for financial advice with respect to Life Insurance.

72.6% believe there is enough information online to help them understand the different types of Life Insurance and Income Protection cover they need.

71.7% believe there was enough information online to understand how much cover they needed.

75.4% of people are confident in purchasing Life Insurance or Income Protection online without financial advice.

It’s evident from these results that people are happy to use online tools and use the internet. It is now up to insurers to make it easy for consumers to research and compare Life Insurance policies via the internet.

People increasingly want to use the internet to help them determine what type of cover and how much cover they need, but unfortunately, they sometimes can’t easily access that information.  This is a key reason why so many Australians are still under-insured.

In addition, Life Insurance as a whole is often perceived as being confusing and complicated. As insurers, we need to help people understand what type and level of Life Insurance cover is suitable for them, in simple language, to help them make an informed decision confidently.  This will then allow them the peace of mind they deserve.

NobleOak’s  Life Insurance Calculator was designed to help people determine what level of cover they need – without having to pay for financial advice.

The Life Insurance Calculator takes about 5-10 minutes to complete and is free to use. It covers Life, TPD, Trauma and Income Protection and produces a personalised report people can then use to get a quote.

NobleOak’s calculator has been independently verified by Rice Warner Actuaries, a leading independent provider of research and actuarial advice to the Australian Financial Services Industry.

Source:

Research conducted by Pureprofile in December 2018 with 1,043 Australian respondents.

The latest research from NobleOak has discovered that married or engaged people are more likely to have Life Insurance.

These are the findings in the 2018 NobleOak research that shows where people had Life Insurance (including Life/Death cover, TPD or Trauma cover) and/or Income Protection, 70% were married or engaged.

Of those people with some form of Life Insurance, only 5% who were divorced or separated had cover compared to 15% if single, and 9% if in a relationship.

Finding that married people have a higher incidence of Life Insurance clearly illustrates the value they see in being covered. They see it as a necessary safety net if the unthinkable ever happened. And especially if they have children or are starting a family.

A major driver for married people is that as their family grows they may need to upgrade their home or move to a bigger house. In these circumstances you should review your Life Insurance policy to see if you need to increase the amount of cover. This can be a straightforward process with NobleOak as we offer a Future Increases Benefit with our term life cover. If you were to increase your mortgage, your cover can be increased by $100,000 without needing to provide any updated health or medical information.

What is concerning is that of people with cover, only 5% of people who said they were either divorced or separated had any form of cover.  This compares to findings from our 2017 research which showed 9% of people either divorced or separated had some form of cover.  In addition, people in this group are more likely to be female and aged between 45-54.

People who get divorced or are separated and have Life Insurance should review their cover. As a minimum you will need to review who the beneficiary is and update it if necessary. It’s also a good idea to check if the amount and type of cover is still appropriate for your new situation.

NobleOak has made it easier for people to determine what type of Life Insurance cover they need through our online Life Insurance Calculator.

The Life Insurance Calculator takes about 5-10 minutes to complete and is free to use. It covers Life, TPD, Trauma and Income Protection and produces a personalised report people can then use to get a quote.

The calculator has been independently verified by Rice Warner Actuaries, a leading independent provider of research and actuarial advice to the Australian Financial Services Industry.

Source:

Research conducted by Pureprofile in December 2018 with 1,043 Australian respondents.