Asteron Life has launched an adviser support package to tackle lapses among people aged in their 40s.

Consumers tend to buy trauma insurance at 40 and lapse at 44, according to the insurer’s research. If they keep the policies, they claim at 49.

Asteron Life EM Mark Vilo says advisers should leverage this pattern in their client retention efforts.

“Australians in their 40s make more life insurance claims than any other age group.

“We are arming advisers with a support package to help retain clients at risk of lapsing at one of their most vulnerable stages of life.” 

The package features an interactive website that helps advisers educate clients about “living smarter” and taking age-appropriate cover. 

Mr Vilo says advisers must play a major role addressing the insurance gap.

They should “routinely discuss with clients the importance of retaining life cover to prevent financial exposure in the event of a major trauma event”.

“We found 71% of lapses are driven by affordability pressures, so it is essential advisers have the tools and strategies to help explain the financial exposure of lapsing cover,” he said.