2 July 2025 | See disclaimer
If you have a partner or children, life insurance can help cover their living costs and provide financial security if you pass away. Depending on the cover you choose, it can also help protect them – and you.
Budget Direct surveyed more than 950 Australians aged over 18 on their insights into whether they have life insurance, why they got their policy, and their attitudes towards it.
Quick Stats
The number of Australians surveyed whose life insurance was through their superannuation (52%), against those who had a stand-alone policy (48%), was evenly split.
More than 50% of Aussies surveyed purchased life insurance to give their loved ones peace of mind.
Nearly 40% of people surveyed felt the best time to invest in life insurance was in your 30s, followed by your 20s (28%), reflecting the ages when most Australians would experience life-changing events, such as marriage and starting a family.
Gen Z survey respondents aged 18-27 wished that they got their life insurance earlier (36%).
Interestingly, 40% of Aussies made a Will because they had dependents.
Online research was the most common way respondents researched for their current life insurance policy (65%).
To insure or not to insure?
Do you have a life insurance policy?
Survey says Aussies are future focussed—the number of Australians surveyed whose life insurance was through their superannuation was 52%, with those who had a stand-alone policy at 48%.,
Males surveyed were more likely to have stand-alone life insurance (54%) compared to females (43%).
Breaking it down by state, New South Wales respondents were the clear winner with 52% of survey respondents having a stand-alone life insurance policy, and 48% having life insurance through their super.
This was followed by South Australia with 50% of survey respondents both having life insurance and through their super and as a stand-alone policy.
Western Australians respondents were more likely to have life insurance through their super with 57% of those surveyed.
When did you get your life insurance?
Male |
Female |
Australia |
|
|---|---|---|---|
Less than 6 months ago |
2.2% |
2.2% |
2.2% |
6 months ago |
6.1% |
4.6% |
5.3% |
1 year |
10.1% |
10.5% |
10.3% |
2-5 years ago |
22.1% |
23.9% |
22.97% |
More than 6 years ago |
59.5% |
58.9% |
59.2% |
The majority of Aussies surveyed have had their life insurance policy for a while with almost 60% having had their insurance for more than 6 years.
Just over 20% of those surveyed got their life insurance policy 2-5 years ago, and 10% of respondents got their life insurance policy a year ago.
Only 2% of Australians got their insurance less than 6 months ago.
Why did you get life insurance?
Male |
Female |
Australia |
|
|---|---|---|---|
Financial security for family members |
55.7% |
46.5% |
51.1% |
Mortgage and/or debt protection for family members |
28.5% |
24.5% |
26.5% |
Personal health factor |
21.5% |
16.1% |
18.8% |
Peace of mind for loved ones |
54.7% |
53.3% |
53.96% |
I could afford it |
18.0% |
10.1% |
14.0% |
Other |
3.2% |
7.6% |
5.4% |
It seems the majority of respondents were motivated to get life insurance by the desire to protect their loved ones.
Interestingly, 54% said that they purchased life insurance to give loved ones peace of mind and 51% got life insurance to provide financial security to family members.
Just over a quarter of respondents (26%) said they got their life insurance policy as mortgage and/or debt protection for family members.
Nearly 20% of those surveyed said they got life insurance for personal health factors (19%).
18-24 |
25-35 |
36-44 |
45-55 |
56-64 |
|
|---|---|---|---|---|---|
Financial security for family members |
38.0% |
46.9% |
57.2% |
52.9% |
51.1% |
Mortgage and/or debt protection for family members |
23.0% |
32.4% |
27.7% |
29.8% |
26.3% |
Personal health factor |
34.0% |
26.6% |
20.1% |
12.6% |
11.0% |
Peace of mind for loved ones |
41.0% |
49.3% |
52.8% |
57.6% |
61.3% |
I could afford it |
13.0% |
14.0% |
9.4% |
13.6% |
14.6% |
Other |
1.0% |
7.3% |
5.7% |
4.2% |
7.3% |
Younger Australians aged 25-35 surveyed were the most likely to get life insurance for mortgage and/or debt protection for family members (32%).
Those aged 36-44 took the top spot out of the age groups surveyed for getting life insurance for financial security for family members (57%).
Personal health factor was the most important reason for Gen Z’s (aged 18-24) surveyed for getting life insurance, compared to any other age group. Similarly, Australians aged 56-64 surveyed were the most likely to purchase life insurance to provide peace of mind to loved ones at 61%.
Life comes in stages
Was there a significant life stage that made you get insurance?
Almost a third of survey respondents said there was a significant life stage that made them get their life insurance policy (28%).
More than 70% of Australians surveyed agreed that there wasn’t a significant stage in their life that made them get life insurance.
Queensland respondents were the most likely to have had a significant life stage prompt them to get life insurance (29%), with New South Wales, Victoria and South Australia respondents close behind at 28%.
On the other hand, West Australian respondents were the least likely to have been influenced by a significant life stage with only 25% saying that it was the reason they got life insurance.
What was the significant life stage that made you get life insurance?
Male |
Female |
Australia |
|
|---|---|---|---|
Marriage |
26.6% |
15.8% |
21.2% |
Divorce |
6.5% |
3.6% |
5.0% |
Have dependents (children and/or others you are responsible for) |
19.4% |
29.5% |
24.5% |
A recent death in the family or among friends |
16.6% |
20.1% |
18.4% |
Taking out a large loan (such as a mortgage. |
9.4% |
13.0% |
11.2% |
Developing my own and/or a family member’s Will |
8.6% |
8.6% |
8.6% |
Other |
10.1% |
8.6% |
9.4% |
N/A |
2.9% |
0.7% |
1.8% |
Having dependents (children and/or others you are responsible for) was the most common significant life stage that motivated survey respondents to take out life insurance (25%) followed by marriage (21%).
Females were more likely to have acquired life insurance due to having dependents (30%) while males were more likely to get life insurance due to marriage (27%).
NSW |
VIC |
QLD |
SA |
WA |
|
|---|---|---|---|---|---|
Marriage |
25.0% |
25.7% |
12.3% |
10.0% |
26.9% |
Divorce |
3.3% |
6.8% |
7.0% |
0.0% |
7.7% |
Have dependents (children and/or others you are responsible for) |
23.9% |
27.0% |
21.1% |
15.0% |
26.9% |
A recent death in the family or among friends |
21.7% |
13.5% |
14.0% |
40.0% |
15.4% |
Taking out a large loan (such as a mortgage. |
5.4% |
18.9% |
15.8% |
5.0% |
0.0% |
Developing my own and/or a family member’s Will |
7.6% |
2.7% |
12.3% |
15.0% |
15.4% |
Other |
13.0% |
4.1% |
10.5% |
15.0% |
7.7% |
On a state to state basis, Western Australians surveyed were the most likely to get life insurance due to marriage (27%) or divorce (8%). South Australian respondents were the most likely to have life insurance due to the recent death of a loved one (40%).
Better late than never!
Do you wish that you got your life insurance policy earlier?
More than a quarter of Aussies surveyed wished they got their life insurance policy earlier (26%).
Survey respondents aged 18-24 were the most likely to have wished they got their life insurance earlier with 36% saying so, amongst all age groups surveyed.
Those aged 25-35 came in second, with 31% wishing they got their life insurance earlier
How long did it take you to go from thinking about life insurance to actually obtaining your current policy?
Male |
Female |
|
|---|---|---|
I got my policy as soon as possible |
28.7% |
32.0% |
It took me a few days to get a policy |
26.1% |
20.1% |
It took me a few weeks to get a policy |
23.9% |
24.3% |
It took me a few months to get a policy |
13.6% |
15.1% |
It took me a few years to get a policy |
7.7% |
8.6% |
Aussies are quick to act when it comes to their life insurance policy… but how long does it take to go from thinking about life insurance to actually obtaining the current policy?
It seems that respondents were keen to get their policy sorted as soon as they think about it, with 30% getting their policy as soon as possible. This is especially true for female respondents with 32% obtaining their current insurance policy as soon as they could.
Almost a quarter of respondents surveyed said it took them a few days (23%) or a few weeks (24%) to get a policy once they thought about obtaining it.
Only 14% of respondents said it took them a few months to get a life insurance policy once they thought about it.
What age in life would you recommend getting life insurance?
When is the best time to lock in your life insurance policy?
Getting life insurance in your 30s was the recommended age by Australians who were surveyed (39%).
The recommendation to get life insurance in your 20s came in next at 28%.
When is the best time to lock in your life insurance policy?
Getting life insurance in your 30s was the recommended age by Australians who were surveyed (39%).
The recommendation to get life insurance in your 20s came in next at 28%.
Queenslanders surveyed were more likely to recommend getting life insurance younger in life with 35% stating that you should get it in your 20s. New South Wales respondents came in next with 30% stating that you should get a life insurance policy in your 20s.
New South Wales respondents topped the states in recommending getting life insurance in your 30s (41%), with Victoria coming in next at 40% and Western Australia third at 39%.
South Australians who were surveyed were more likely to recommend getting life insurance later in life with 7% recommending it in their 60s and 3% in their 70s.
Where there’s a Will there’s a way
Do you have a Will?
The majority of Aussies surveyed had a Will (54%) with male respondents being more likely to have a Will than female respondents (56% and 52% respectively).
The majority of Aussies surveyed had a Will (54%) with male respondents being more likely to have a Will than female respondents (56% and 52% respectively).
Queensland respondents were more likely to have a Will (62%) compared to the other states, followed by South Australian respondents (59%) and Western Australian respondents (53%).
Those surveyed from New South Wales were the least likely to have a Will with more than 50% saying they didn’t have one.
What prompted you to create a Will?
Male |
Female |
Australia |
|
|---|---|---|---|
Marriage |
39% |
25.1% |
32.2% |
Divorce |
7.6% |
11.0% |
9.3% |
Having dependents (children and/or others you are responsible for) |
39.7% |
40.7% |
40.2% |
A recent death in the family or among friends |
13.0% |
14.5% |
13.7% |
Taking out a large loan (such as a mortgage) |
6.5% |
11.4% |
8.9% |
Extensive and/or frequent travel |
7.6% |
6.1% |
6.9% |
Engaging in risky behaviour |
3.3% |
1.1% |
2.2% |
Having health issues |
11.6% |
8.4% |
10.0% |
Other |
4.7% |
4.6% |
4.6% |
There was nothing that prompted me to create my Will |
12.6% |
16.7% |
14.6% |
Having dependents was the most common reason survey respondents decided to make a Will (40%) followed by marriage (32%).
Interestingly, male respondents were more likely to make a Will because they got married (39%) while female respondents were more likely to make a Will because they got divorced (11%).
NSW |
VIC |
QLD |
SA |
WA |
|
|---|---|---|---|---|---|
Marriage |
33.8% |
31.3% |
22.1% |
41.5% |
28.6% |
Divorce |
6.4% |
9.0% |
15.6% |
4.9% |
12.5% |
Having dependents (children and/or others you are responsible for) |
40.1% |
44.8% |
41% |
39.0% |
41.1% |
A recent death in the family or among friends |
14.0% |
12.7% |
13.1% |
21.95% |
12.5% |
Taking out a large loan (such as a mortgage) |
10.8% |
6.7% |
9.8% |
9.8% |
10.7% |
Extensive and/or frequent travel |
7.6% |
5.2% |
7.4% |
12.2% |
1.8% |
Engaging in risky behaviour |
0.6% |
1.5% |
2.5% |
7.3% |
5.4% |
Having health issues |
10.2% |
6.0% |
9.0% |
17.1% |
17.9% |
Other |
5.7% |
3% |
6.6% |
4.9% |
0.0% |
There was nothing that prompted me to create my Will |
14.0% |
14.2% |
15.6% |
9.8% |
21.4% |
For most of the states surveyed, having dependents (children and/or others you are responsible for) was the top reason for developing a Will. For South Australian respondents, the top reason for creating a Will was marriage (42%).
Whilst having dependents (children and/or others you are responsible for) was the second top reason for creating a Will (39%), those surveyed in South Australia were also more likely to create a Will due to a recent death in the family or among friends (22%).
More than 15% of Queensland respondents made a Will because they got divorced.
How do Aussies find their life insurance?
Where did you go to do your research regarding the best life insurance policy for you?
Jumping on the laptop, phone or home computer are Aussies’ preferred way of researching life insurance with 65% of survey respondents turning to online research.
Asking family is the second most popular method (36%) followed by asking friends (22%).
Jumping on the laptop, phone or home computer are Aussies’ preferred way of researching life insurance with 65% of survey respondents turning to online research.
Asking family is the second most popular method (36%) followed by asking friends (22%).
Younger Australians were the most likely to seek advice from their family with 51% of survey respondents aged 18-24 and 42% of respondents aged 25-35 doing so.
Respondents aged 18-24 were also the least likely to have done online research (54%). In contrast, respondents aged 45-55 were the most likely to have done online research (72%).
Survey respondents aged 56-64 were the most likely to have used consumer advocacy groups to help them make their decision (9%).
