Just 6% of Australians are getting advice from professional advisers about their life insurance needs, a study commissioned by the Council of Australian Life Insurers (CALI) has found. 

CALI says the figure shows financial advice remains “too inaccessible and expensive” for Australians. A basic consultation with a financial adviser can cost $3500 on average. 

The peak body has been urging the Federal Government to ease restrictions on life insurers, to let them provide “limited advice”, and it released the study’s findings a day before Assistant Treasurer Stephen Jones announced a change in policy. 

As reported last Thursday, Mr Jones said insurers will be permitted to provide “simple advice” under a new proposed model as part of the Government’s response to the Quality of Advice Review (QAR) final report. 

Another key finding from the study shows more than a third of respondents rely on loved ones for life insurance guidance and a third have shown an interest in getting advice in the past three months. 

“This shows a serious gap in the quality of advice Australians are getting about their life insurance,” CALI CEO Christine Cupitt said. 

“We believe people are turning to their family and friends because the options for getting professional advice are too limited and too expensive.” 

The study also found two-thirds of Australians (66%) are concerned that cost of living pressures will impact their ability to afford to take out or continue paying for life insurance. 

When reviewing their cover, people are just as likely to go online and use search engines and digital calculators as they are to contact their life insurer directly. Just 38% would speak to a financial adviser. 

“It’s critical that Australians have better access to affordable professional advice when they need it most, so they can make informed decisions about how to protect their future,” Ms Cupitt said. 

“Australians shouldn’t have to pay $3500 on average for financial advice, especially when life insurers stand ready to provide limited advice about their products which can give people added peace of mind.”