“Without these reforms, millions of Australians and their families will be left behind in financial limbo,” CALI CEO Christine Cupitt said.

“Doing nothing won’t just hurt today. It’ll set in motion a chain reaction over the next 10, 20 and even 30 years as many Australians remain priced out of getting the right advice to secure their financial future and look after their loved ones.”

Independent research commissioned by CALI shows that Australians' financial advice needs are not being met, particularly for those who can’t afford to pay for a financial adviser in a cost-of-living crisis.

The data highlights that more than 40 per cent of Australians want more personalised advice that would help them decide on how much cover they need and the products that are best suited to them.

Cupitt said under the proposed reforms, this is the kind of advice life insurers would be able to give their customers about their own products when they ask for them, and at no extra cost to the customer.

“People need someone to talk to about their financial future. They’re already dealing with sustained cost of living pressures, we shouldn’t be turning our backs on them as they try to take care of their loved ones.”

Under current laws, Australia’s life insurers are restricted to providing advice that is general in nature only.

“We have an advice accessibility crisis in this country. It’s leaving too many people underinsured and unprotected because they can’t afford to get the right advice about the best cover for them,” Cupitt said.

“The barriers to getting advice remain far too high. Australia’s life insurers just want to be able to provide simple advice on their own products when people ask them to, at no extra cost to the customer.”