New Zealanders are more interested in protecting cars and homes than their lives, according to NZ Financial Services Council (NZFSC) Chairman Jenny Shipley.

More than 95% of homes and cars are insured but only 57% of people cover their lives and barely 20% have income protection, a Nielsen study for the council reveals.

The research also shows 60% of New Zealanders find personal insurance “all too hard”.

“Part of the reason is the jargon used by the [life] insurance industry and the complexity of the products on offer, making it hard to understand exactly what is being delivered and value for money,” Dame Jenny told the Australasian Life Underwriters and Claims Association’s conference in Auckland yesterday.

“Market research indicates there is no hostility to the idea of personal risk insurance. Most people understand its value but don’t know how much they need, or feel confident about purchasing it.”

She says many people are unsure where to obtain advice. “One focus group participant spent five hours checking out what was available before she thought she understood what she needed for her family.”

The council will now use its website and social media to give life insurance advice to people facing significant events such as buying their first home or having a baby.

“The NZFSC will shortly release information on the relative risk of long periods off work following an accident, a major sickness or unemployment,” Dame Jenny said. “Many New Zealand families are extremely vulnerable if a major breadwinner is unable to work for three months or more.”