Australians are underinsured and over-confident, according to a new report from Zurich. Only 25 percent of Aussies are insured against premature death, and 27 percent insured for a serious illness or disability. The rest of the country is banking on the perception that ‘it won’t happen to me,’ when statistics suggest that it very well could.
Almost 50 percent of Australians have been personally affected by a loss of income due to serious illness, yet more of us are willing to insure our cars before we insure ourselves. The majority of Australians – 65 percent – have less than six months’ worth of savings that can be accessed in the event of a serious illness or disability. While some of these people will be lucky, the truth is, a serious illness or death could happen to you or the ones you love, no matter their age or condition.
So why are Australians so underinsured and what can be done about it?
Life Insurance Misconceptions
The Zurich survey found that 19 percent of Australians have a ‘good to very good’ knowledge of disability insurance. This low number suggests that Aussies might be underinsured because they’re not sure what they’re dealing with when it comes to life insurance.
Here’s How You Do It:
Step 1: Select your current age below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 13 of Australia’s largest insurers. You may also be entitled to a free consultation.
We often associate life insurance with a payout in the event of death. This is an accurate description, but it’s not the only coverage option under the life insurance umbrella. Life insurance can also include disability insurance, trauma insurance and income protection insurance. This type of insurance can protect you if you lose your job or fall victim to a serious injury. None of these topics are pleasant to think about, but they are facts of life.
A lack of adequate life insurance across the country can cost the public healthcare system up to billions of dollars. People rely on the government to provide taxpayer-funded healthcare in the event of an emergency, but that can result in a strain on the system. Government services become more expensive as a result, and may not meet your needs the way a good life insurance policy can.
If you are part of the 75 percent of Australians who are currently at risk, protecting your family is easier than you think, and it doesn’t have to cost a bundle. To determine the type of life insurance coverage that is most effective for you, first consider your basic expenses. These may include:
- Mortgage or rental payments
- Car payment
- Other insurance policies (car, home, health)
These expenses can add up quickly when there is no income to pay the bills. Life insurance coverage should cover the total cost of meeting your family’s needs, along with any extra costs associated with a trauma or disability that may not fall under health insurance. Some reports suggest that the average Aussie couple with children needs life insurance coverage of at least ten times their annual earnings, just to cover debts and maintain a current standard of living.
There are a number of insurance providers and plans available on the market. Do your research and compare your options to make sure that your family isn’t among the underinsured. The cost of saying ‘it won’t happen to me’ can be far greater than an affordable life insurance premium.
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.