Evidence is growing of the unmet need for life insurance advice for people under 35 years, with one in two younger Australians wanting financial advice.
According to new research from the Council of Australian Life Insurers (CALI)1, nearly half (49 per cent) of Australians aged 18-34 say they want financial advice, especially on life insurance, yet just one in ten (11 per cent) receive it.
“We have a growing generation of Australians who are motivated to make smart financial decisions, but for many, professional advice is out of reach,” said CALI CEO Christine Cupitt.
“We need to be able to offer affordable, timely and personalised support. That’s what the Government’s Delivering Better Financial Outcomes reforms are all about, and it’s critical they stay on track.”
CALI’s research also shows 57 per cent of 18-34 year olds want more personalised advice that helps them decide how much cover they need, compared to 16 per cent who just want basic information.
Top triggers for considering life insurance include a change in financial circumstances, witnessing a loved one face illness, or experiencing their own health challenge.
“These are real-life decisions being made at real-life turning points,” Ms Cupitt said. “Whether it’s a health scare or witnessing a loved one go through something difficult, these moments prompt people to think about their own financial safety net.”
In the absence of more accessible financial advice, younger Australians turn to informal sources such as friends and family (41 per cent), social media (20 per cent), and online forums (34 per cent).
“Instead of getting help from a qualified adviser, younger Australians are piecing together advice from friends, Google searches, and TikTok videos; sources that aren’t always accurate, tailored or in their best interests.”
Meanwhile, financial advisers are optimistic about the future of life insurance, with 82 per cent2 expecting it to make up a greater share of their business over the next five years.
This growth is fuelled by younger Australians, alongside factors such as intergenerational wealth transfer, larger mortgages, a shrinking adviser workforce, and increasing reliance on referral networks.
CALI has long advocated for more affordable, accessible financial advice. This includes supporting the Federal Government’s introduction of a new class of adviser who can offer limited advice on life insurance products, when and where it’s needed.
“The Federal Government’s introduction of a new class of adviser would be a win-win for all Australians by increasing access to advice, while providing a clear pathway for those looking to enter the advice industry,” Ms Cupitt said.
Under current laws, life insurers in Australia are legally restricted from providing personal advice to customers, even when asked directly. In December 2024, the Federal Government committed to reforming this framework to allow life insurers to offer straightforward advice when customers seek it, at no extra cost.
“Younger Australians deserve support and advice to build the right safety net and have peace of mind about their future. We welcome the Government’s commitment to reform, but action is needed now to close the gap between demand and delivery of financial advice,” Ms Cupitt said.