Congratulations Gen Y-ers, on being the ‘assertive take-control’ and financially responsible generation. That’s right – contrary to popular (mis)beliefs about Generation Y, the TAL Australian Financial Protection Index shows young adults are upping their financial protection and life insurance coverage more than any other age group.
Financial protection and life insurance usually includes one or more of the four forms of cover: life , total permanent disability TPD, Income Protection Insurance and recovery insurance. The survey showed that when it came to financial protection, Generation Y have taken the initiative to ensure they are financially protected if their income were to suddenly stop due to illness or injury – more than any other age group.
According to the third annual TAL Australian Protection Index, Gen Y aged 18-34 had the greatest increase in their Financial Protection Index, up to 26.5 from 24.5 last year and 22.2 in 2013. That’s an 8.2% improvement year on year. Meanwhile, other demographics including Gen X and Baby Boomers actually saw a decline in their Financial Protection Index from 2014 to 2015.
While the older generations maintained a higher absolute index (Gen X aged 35-49 scored 36.4 while Baby Boomers aged 50-64 came in at 32.6), Gen Y was the only age group to demonstrate a marked improvement in their index year on year. The average financial protection index across all age groups in Australia was 31.6.
One possible reason for the trend is that Generation Y entered the workforce just at the start of the Global Financial Crisis. They’ve witnessed firsthand how a lack of financial protection impacted the older generations – even their own families – and they want to be sure the same thing won’t happen to them. After all, you wouldn’t want a financial hiccup to ruin your chances of achieving your life goals and aspirations.
Meanwhile, if you haven’t insured yourself financially with life, disability, income protection insurance or critical illness cover, it may be time to take up coverage. These types of insurances not only offer you and your loved ones much needed support in difficult times but they also provide ongoing peace of mind. And if you do have coverage, there are additional options to consider so that you can feel adequately protected in your time of need.
Find out more about the TAL Financial Protection Index at https://www.tal.com.au/about-us/media-centre/more-young-and-singles-taking-up-financial-protection