Headline: Considering Life Insurance? Here’s what you need to know
Strap: To make the right decision for your future.
Whether you’re a tiler, nurse, a project manager or builder, life insurance is something well worth considering. There are a lot of preconceptions that people have regarding life insurance, many of them untrue or misleading. When entering into a discussion with your adviser, it’s crucial to have an open mind. So, here are some things you need to know about life insurance to help you make an informed decision about your future.
Real and Beneficial
92% of the Australian population have life insurance, however almost half of these people are not sufficiently covered.1, This figure is certainly alarming, especially when one considers that 1 in 2 Australian men and women will be diagnosed with cancer by the age of 852. Not to mention the myriad of other conditions that insurance may cover.
A key factor in why people overlook seeking life insurance is the common misconception that insurance companies don’t follow through with payments. Yet according to statistics, in 2016 around 90% of life insurance claims were paid in the first instance3.
When put side by side, these figures present an unfortunate truth – many Australians are needlessly missing out on securing their family’s financial future with the right life insurance policy.
Prepared and Covered
Another reason why someone may not seek life insurance cover is that thinking about death can be understandably uncomfortable. However, with the appropriate life insurance cover, you can be financially prepared for unforeseen circumstances. So, if you’re unable to work due to an injury or illness, you may have the financial support that you and your family need. It’s understandable if you’re unclear of what type of cover will suit you best, which is why seeking professional advice from an adviser can be beneficial.
Above and Beyond
Many people assume that life insurance through their superannuation fund is sufficient, which is not always the case. At times, the level of insurance cover is not sufficient to offer you and your family adequate protection from financial hardships when the unexpected occurs.
Plus, in many situations, your private health insurance may not cover the total cost of treatment and rehabilitation, a ‘gap’ which can add unnecessary stress and burden to you and your family.
1 According to Rice Warner/Underinsurance in Australia 2015.
2 Source: Cancer Council Australia/Cancer in Australia 2017
3 Statistics collected by ASIC in its 2016 review of claims handling
With all this in mind, it’s worth considering talking to a qualified financial adviser who can help you decide on personalized cover that truly meets your needs.
Important note: This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.