More people are taking out income protection and health insurance, according to the latest ANZ Survey of Adult Financial Literacy.

The number of people holding an income protection policy has risen from 30% in 2008, when the survey was last conducted, to 35% in the latest report.

ANZ surveyors spoke to 3502 people with 64% in capital cities and the rest in regional Australia.

The survey finds private health insurance penetration has risen from 55% in 2008 to 62% while life insurance was at 33% in the current survey. This has fallen marginally from 34% since the 2008 survey.

The survey says people who hold private health insurance are generally young (51% aged between 18-24) or older (56% among those aged 70 or more).

47% of people who hold income protection policies are aged between 35-44 years.

The survey admits the low figure for life insurance probably under-estimates the true number of policies, as many people will be covered through their superannuation fund.

It says those who do hold life policies are most likely to be male, aged 35-59, earn more than $80,000 a year and hold a mortgage in excess of $300,000. They also live in a household with a partner and dependent children.