As we pointed out a few weeks ago, the Australian Consumers Association (ACA) isn’t always right. That report covered an ACA website statement that revealed a lack of understanding about the differences between brokers and agents.

This time round it’s the Association of Financial Advisers (AFA) which has a bone to pick with the ACA over statements made by Financial Services Policy Officer Catherine Wolthuizen about life insurance.

In an article in Melbourne’s Age on community attitudes towards life insurance, Ms Wolthuizen said consumers’ life insurance needs have become a secondary issue and there are now cheaper alternatives freely available.

She said fewer families are dependent on a single wage-earner, and the issue of the main breadwinner dying isn’t a major concern for younger families.

But AFA President Robin Yates disagrees, saying the statement is “one of the most ill-informed comments” he has heard in his 30 years in the industry.

He says any family that heeds Ms Wolthuizen’s advice and loses the main salary-earner “may be able to sue the ACA for the resultant loss”.

“Statements of this sort are dangerous and show a blatant disregard and disinterest for consumers,” he said. He says all working spouses should seek life insurance advice from a qualified and experienced practitioner.