The Council of Australian Life Insurers says worsening cost-of-living pressures are forcing people to go uninsured and ditch conventional mental health support.  

Its latest research shows 71% of Australians fear financial pressures will stop them keeping or taking out life insurance. About 62% cite cost as the main barrier to obtaining life cover, compared with 30% who point to “lack of need”. Lower-income earners and women are more likely to say they cannot afford it.

CALI CEO Christine Cupitt says the research points to a worrying trend.  

“Life insurers play a crucial role in people’s lives,” she said. “We offer peace of mind and provide a financial safety net during life’s biggest challenges, but before customers come to us, they’ve often sought support elsewhere.

“Without the strong financial safety net that life insurance provides, more people will fall through the cracks.”  

The research also shows nearly four in 10 Australians would apply for government assistance if unable to work due to mental health issues. It is the first time in a year that this has rated higher than turning to family or friends.  

“When we see Australians choosing the government over their own families and friends in tough times, it’s a clear alarm: families are struggling, and the safety nets they once relied on just aren’t enough any more,” Ms Cupitt said.  

She says more support is needed to ensure mental health challenges are addressed early.  

“No one wants to be so unwell they can’t work, and mental health is an area where the government, experts and our entire community can make a positive influence early on.”