CommInsure's life risk survey also found that 11 per cent of Australians are unsure if they have insurance and of the 34 per cent who do have insurance, over half have this through super and less than a fifth have ever topped it up.
"One of the key messages coming out of [the survey] is that given affordability, and concern about income and a desire to reduce expenses in the Australian marketplace, I think extra work can be done by all corners of the industry to present insurance as not only important but also that there are options," CommInsure general manager of retail advice Tim Browne told InvestorDaily.
He explained that the report helps advisers understand when to engage the conversation with clients by understanding what the triggers are that motivates them to consider insurance.
"There are times in people's lives where it is a bigger priority than others. This re-confirms the critical role that advisers play," Mr Browne said.
"It is a big opportunity to engage more effectively, not just with the client, but also with the network to ensure they make better insurance decisions," he said.
Findings from the report will aid advisers new to insurance to decide their strategy for conversations and how to engage clients in those insurance conversations. It also gives experienced advisers more contemporary information, CommInsure said.
"The best outcome will come from personalised advice in conjunction with an adviser. [But] if consumers don't have access to an adviser, a message that we all need to get out is that you've got to make sure you have some level of insurance. It is critical to have your income secured," Mr Browne said.
The report showed that Australians would be most lively to put a $1,500 windfall towards savings (39 per cent) or bills (37 per cent), with just two per cent using it to take out insurance and just one per cent indicating they would top up their existing cover.
The most prevalent triggers for purchasing insurance was when taking out a mortgage (28 per cent) and having a child (24 per cent).
However, faced with the inability to earn an income for over three months, 39 per cent of Australians would have to mortgage or re-mortgage their home, 32 per cent would have to downsize their home, and 28 per cent would be forced to move in with family or friends, the report stated.
