Lifebroker Finds Plumbers and Electricians More Financially Literate

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Research by one of Australia's largest sellers of life insurance shows self-employed Australians, including tradespeople, are much more likely to buy personal insurance than employees.

Lifebroker life insurance

Self-employment makes people mindful of their financial situation and in the case of personal insurance, makes them face the potential risks to their finances like injury and illness.

Research by one of Australia's largest sellers of life insurance shows self-employed Australians, including tradespeople, are much more likely to buy personal insurance than employees.

Lifebroker said 25 per cent of all buyers of personal insurance were self-employed, more than double the percentage of self-employed people in the workforce which is 9.3 per cent.

Lifebroker based the figures on an audit of over 7,000 financial accounts, representing Australians across occupations, states and territories.

Self-employed occupations more likely to buy personal insurance include IT contractors, builders, plumbers and electricians, and self-employed professionals including doctors, barristers and lawyers.

According to Mr Chris Eade, Lifebroker founder and Managing Director, self-employment contributes to better financial literacy.

"Self-employment makes people mindful of their financial situation and in the case of personal insurance, makes them face the potential risks to their finances like injury and illness."

"In contrast, when it comes to buying personal insurance employees often have a false sense of security, usually linked to their perceived working entitlements."

"Many employees believe their employer will help out if they become injured or ill and are unable to work. Sadly this usually isn't the case."

"Employees' sick leave and annual leave pay contribute to a sense they can and should continue to be paid if they are forced to stop working.

"On the other hand, self-employed people are acutely aware that if they don't work, they don't get paid."

"Self-employed people, particularly tradespeople, are also more likely to pass financial advice on to their colleagues."

"Tradies regularly tell us they were advised to buy a financial product by fellow tradesperson, often the person to whom they were apprenticed," Mr Eade said.

The top five reasons people buy personal insurance include:

  • Self-employment
  • Protecting a partner and children
  • Being aware of someone else who died or was sick or injured
  • Being advised by a financial adviser
  • To cover their mortgage

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Matthew Read
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