TAL and Cover Genius have launched a “bite sized” embedded life insurance product in Australia, called Backd.

The workplace-linked offering “levels the life insurance playing field”, with people aged 25-44 much more likely to buy cover online, Cover Genius CEO Angus McDonald says.

Many do not have life insurance because they feel they cannot afford it, have not been offered it or think the process will be too complex, he adds.

“Backd gives employers a simple way to offer their employees easily accessible protection that suits their income and financial needs by simply embedding it into their existing human resources or payroll platform.

“Bite-sized life and income protection can engage younger Australians who ... appreciate the ease and value of purchasing embedded protection online for other things such as travel and music events.”

Backd pays $100-$300 a day for income protection and up to $150,000 for life insurance.

About 1 million Australians are underinsured for death and total and permanent disability, and 3.4 million have no or insufficient income protection, the Backd partners say. Part-time workers, contractors and casual employees face limited access to affordable protection.

TAL Group CEO and MD Fiona Macgregor says 74% of the 54,000 claims the insurer paid last year supported people with illness or injuries that stopped them working.

“Life insurance is much more than death benefits. With Backd, more Australians will get support critical to their recovery,” she said.