There is a distinct difference in adequate levels of insurance between people who have received financial advice and those who have not, according to a new piece of research released by life insurer Asteron.
Asteron surveyed more than 2,000 working Australians of whom 35 per cent have received financial advice in their lifetime. The research found those who had used a financial adviser were twice as likely to be adequately covered and were confident about the level of their cover.
However, only 19 per cent of those without an adviser had life insurance (either directly through their employer or online), while almost a quarter had never considered the need for it.
Asteron’s executive general manager, Jordan Hawke, pointed out that the consequence of being subject to a severe illness or an accident could be “likened to the financial impact that being unemployed for a period of time can have on an individual and their family”.
The research had also found only 10 per cent of those who had sought financial advice in their lifetime were not covered.