A recent poll of Australian financial advisers in February 2025 found more than three-quarters (79%) have experienced a higher rate of life insurance cancellations over the past 12 months.
Seven key factors driving policy cancellations are:
- Rising premiums
- Increased prevalence of chronic health conditions
- Aging population
- Cost-of-living
- Intergenerational wealth transfer
- Property and business sales
- Accessibility to advice challenge
At the coalface of this decision to cancel or reduce are financial advisers, who over the past three years, have been telling us at industry forums, education sessions, conferences, webinars and panel sessions, that more of their clients are questioning the value of their life insurance policy.
This conversation underscores the vital role of advice and the esteem in which policyowners hold their advisers who help them navigate these critical decisions.
iExtend offers a unique alternative to life insurance policyowners who have committed to cancelling or reducing their life insurance.
iExtend pays all premiums on co-owned life insurance while future claim benefits are shared with the policyowner, their beneficiaries or estate, with the claim split based on how long iExtend has been paying the premiums.
One in four of the policies assessed by iExtend is retained by the policyowner, demonstrating the value that would have been lost and offering a vital retention strategy for advisers who can maintain their commitment to being there when their client needs them most.
