Australians are taking out more life insurance
Australians are taking out more life insurance and insurers profit
The modern financial chaos has led to ever more uncertainty in our lives. However, two things are still certain – death and taxes. And with the economy tanking, taxes are only going to go up. Whether to offset potential estate taxes upon death or merely to provide certainty of support for their families after death, life insurance sales are skyrocketing. Many people are realizing the need to provide for their families after they are gone. Even those who already had coverage are increasing their life insurance coverage.
This is why AMP increased a 29 percent in operating earnings and CommInsure saw 18 percent growth. They are not only gaining new customers for all types of insurance, their existing customers are increasing their coverage or getting additional policies – without much more overhead expense to the company. Life insurance is a primary driver for this income growth. This is proven by the example of Tower, which only offers life insurance, which saw a 14 percent growth in 2008.
When times are uncertain, more people take responsibility to provide certainty and stability for their families. Because of this realignment of priorities, insurers will continue to see revenue growth even in our down financial market.
Tags: Life cover