As reported in this week’s LOCAL news section, the life insurance industry is tackling underinsurance head-on with an industry-funded awareness campaign that aims to boost life cover take-up rates.

The Lifewise campaign aims to make Australians aware of the financial hardship people face when they are inadequately covered for an accident, sickness or death.

IFSA says while some people consciously choose to self-insure, “most Australians have inadequate cover because of apathy or a perception that life insurance is too hard and too expensive”.

Senior Policy Manager Emma Grainge told insuranceNEWS.com.au the association aims to encourage all Australians to make a conscious decision about their insurance needs.

“We typically have a level of cover in our superannuation which aims to apply appropriate cover to as many people as possible. That is unlikely to provide exactly what individuals need.”

The campaign will be launched in May and use a website, calculators and case studies as education tools.

“Some people who have a lot of savings might then say I don’t need life insurance,” Ms Grainge said. “That’s fine – at least they will have thought about it.”