The Council of Australian Life Insurers has released a report backing the industry’s long-running push for legislative changes governing the way it provides advice.

It says Australia has an “advice accessibility crisis” and the federal government’s plan to allow life insurers to give advice on their products is key to helping people who want financial guidance.

For the report, CALI examined more than 5000 workers and found the financial advice needs of young people (aged 18-34), women and those in their mid-careers (aged 35-54) are not being met.

More than two-thirds of workers are concerned that cost-of-living pressures will affect their ability to afford life insurance, according to the report.

“Australia’s safety nets are stretched far too thin, and people are increasingly worried about falling through the cracks,” CALI CEO Christine Cupitt said. “Life insurers have a critical role to play to ensure that doesn’t happen.”

Almost 90% of Australians think it is important that they can access financial support through their life insurer in the event of mental health challenges that stop them working. Despite this, only one-third would turn to their life insurer for help in this situation. Most workers are more likely to ask family and friends for help, or seek government assistance payments.

“In the past three months alone, almost one-third of Australians considered seeking financial advice on life insurance, but just 8% actually received it,” Ms Cupitt said.

She says the report shows life insurers provide a safety net and pathway for people to secure their futures.

CALI released the report today as the federal government continues with its advice reform program.

Financial Services Minister Stephen Jones has said the second tranche of reforms, including plans to allow life insurers to provide “simple” advice on their products, will be developed this year.

At present, life and general insurers can only offer general advice.

Under the government’s plan, a new class of advisers will be trained to provide simple advice. They will generally be employees of insurers and other financial services institutions, and they cannot charge customers fees or commission.