The Council of Australian Life Insurers warns financial security is taking a back seat after new data showed many people would reduce their life cover before cutting home or car insurance. 

Independent research from the council shows about 79% of respondents have motor insurance, compared with 34% holding life insurance.

The survey of 5000 people finds Australians nearing retirement, aged 55-64, have the highest difference, with more than 80% holding motor or home insurance but only 29% having life cover.  

Among respondents aged 35-54, 38% hold some form of life cover, as do 32% of younger adults.  

The research also reveals working Australians are three times more likely to cut their life insurance than their home or car policies.

About half of those surveyed would also forgo superannuation contributions to help cut costs.  

CALI CEO Christine Cupitt says the data reflects the “advice accessibility crisis in this country”, which she says is “leaving far too many people underinsured and unprotected when it comes to their future financial security. The advice needs of Australians are not being met, particularly for those who can’t afford to pay for a financial adviser in a cost-of-living crisis.  

“Getting the right advice can set them up for the future, getting no advice can leave them with nothing to fall back on when times get tough.”  

More than 40% of survey respondents want personalised advice, which would be delivered through tranche two of the federal government’s Delivering Better Financial Outcomes reforms.