Knowing friends and family who have been spared financial hardship by being insured helps drive life insurance take-up, according to a study by TAL.

About 20% of survey respondents know someone who has benefitted from a payout following illness or death of a loved one, the research shows.

Among respondents with life cover themselves, the figure rises to 33%.

TAL Group CEO Jim Minto says positive experiences can be a strong motivator to securing financial protection.

“I am actually not surprised one in five people have heard of a story how life insurance has saved a family from financial hardship in a time of need,” he said.

Among respondents with life cover, 39% took “unprompted action” to buy the insurance – making their own, independent decision.

Other drivers for having life cover are inclusion in super packages (32%) and family discussions (22%). Only 19% were prompted by a financial adviser.