About 44% of Australians have no life insurance and have no plans to acquire any either, according to a survey by online financial broker Savvy. 

Only 13% of the 1000 survey respondents without life insurance say they are considering getting it and 29% say they already have cover through their superannuation fund. 

Savvy says the findings are “alarming” considering Australians seem to understand the value of life insurance. 

About 59% of the respondents agree that a life policy should cover death with 67% in the 35-44 age group citing it as the most important component of a life insurance policy. 

Around 42% said that trauma and accident cover is important, with 44% of respondents agreeing that income protection insurance and total and permanent disability insurance are important features.  

“Life insurance in all its forms, be it death cover, income protection, or total and permanent disability (TPD) is not only about protecting yourself but protecting your family and community for the worst,” Adrian Edlington, a spokesperson for Savvy, said. 

“With costs of living rising and inflation still biting, even a temporary shortfall in income could prove disastrous for many families. 

“But the ultimate benefit is this – peace of mind.” 

Savvy says most people think that life insurance is just death cover – an insurance that pays out a lump sum to a chosen beneficiary upon the policyholder’s accidental death. 

However, life insurance can also include other policies. 

TPD for instance provides a lump sum to cover hospital costs and other debts after suffering an injury so severe that it leaves an insured permanently unable to work. 

Click here for the full survey.