Generations X and Y are showing the same lack of interest in life insurance as the Baby Boomers, according to Association of Financial Advisers National President Brad Fox.

“Life insurance is not a topic they will bring up in discussions – advisers have to prompt them,” he told insuranceNEWS.com.au.

“But when you tell them you can get them compensation for loss of income if they have an accident or fall ill, and that it will cost between 1.5% to 2% of their salary, then they become interested.”

Commenting on a fund administrator’s claim at a recent superannuation conference that said life insurance is the second most popular topic raised by younger members, Mr Fox says awareness of life insurance is still “very low” among young people.

“This is why we still need to undertake more education to tell people about the benefits of life insurance,” he said.

“And campaigns have to be targeted to the particular age groups.”

Mr Fox, who runs his own life insurance practice in Melbourne, says Baby Boomers are highly analytical and like to research the subject before making any decisions.

“Generations X & Y love true stories, so if we are to raise awareness we have to tell them about real examples,” he said. “We need a factual campaign selling the benefits of insurance.”