Life insurance would be a long way down the wish list for consumers given a 10% rise in income, according to a poll by TAL.

Some 58% of respondents say they would save the money, while other popular options include settling bills (30%), paying a mortgage (28%) and reducing credit card or personal debt (25%).

“The deleveraging taking place since the global financial crisis is still a priority for consumers,” TAL CEO Jim Minto said.

Other desired purchases include holidays, cars, technology, meals out and additional study.

Only 5% would take out or upgrade personal insurance, including income, disability, life and illness cover. Just 4% would take out another type of insurance, the least popular response.

TAL says 95% of Australians have inadequate cover for a loss of income.

“We are constantly trying to understand why so many Australians are reluctant to insure themselves properly,” Mr Minto said.

“As an industry we need to focus on ways of better demonstrating and communicating the value of the forms of life insurance.”

The survey by Galaxy Research questioned 1260 Australians in September.