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Most Australians Lacking Professional Financial Advice and Clarity on Life Insurance

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

Australians’ confidence in financial security is eroding due to a combination of cost-of-living pressures, the associated mental health impact, and a lack of professional financial advice. This is a key takeaway of the State of Australia’s Safety Net 2025 Report, released by the Council of Australian Life Insurers (CALI).

The CALI 2025 Report, which paints a picture of working Australians struggling with rising living costs, details the mental health strain associated with financial and work pressures and a lack of financial clarity. This is impacting all generations, with mental health claims now the leading cause of TPD claims in Australia.

According to the report, just 8% of working Australians received personal financial advice on life insurance in the past year. Simultaneously, it found most Australians lack confidence in their understanding of insurance products.

While the report indicates close to half of the population trust online sources for financial information, a lack of tailored professional advice is placing people at risk of having inadequate coverage or unsuitable coverage for personal needs.

Interestingly, a large proportion of Australians are interested in accessing life insurance through superannuation, reflecting the important of holistic professional financial advice across savings, superannuation and insurance.

According to The State of Australia’s Safety Net 2025 report:

• 64% of Australians believe life insurance provides peace of mind and a financial safety net for life’s biggest challenges.
• Only 8% of working Australians have received professional advice about life insurance.
• One in three has no life cover at all – compared to 80% of Australians who hold car insurance.
• 34% of workers could only cover up to one month of regular living expenses if they couldn’t work.
• And 69% worry cost-of-living pressures could make it harder to maintain protection.
• Access to life insurance through superannuation is highly valued with more than two-thirds of working Australians rating it as important.

The CALI 2025 Report reveals that while Australians understand the value of life insurance, many remain underinsured due to cost pressures, confusion and limited access to advice. At Newealth, we help you close that gap – with clear, comprehensive and tailored financial advice. We ensure you and your family are protected no matter what life brings.

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General Advice Warning:
The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
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