Not Enough Australian Families Calculate Life Insurance Needs

A recent survey has found that less than 50% of Australian household's do not examine their life insurance needs; even though those with children listed premature death as a major financial concern.

The MetLife survey looked at the financial concerns and expectations of employees, and the international trends of employer provided life insurance. The survey also looked at retirement, health insurance and disability.

Life Insurance in Australia

Findings revealed that over 25% of Australians rely on their wages to live week by week, with some struggling to pay bills.

The report also showed that nearly all Australians have some form of debt.

Income Protection Insurance in Australia

Figures also exposed the real need for income protection insurance, with 52% of respondents stating that having enough money to pay bills during sudden income loss was a top financial concern.

Alarmingly, this figure rose to almost 70% for those in the 41 to 50 year old age bracket.

Mr Russell Cain, CEO of xLife said that while the underinsurance gap in Australia is slowly shrinking, there is still a long way to go.

"I've looked at the figures and it's staggering to think that such a small number of Aussie households have looked at life and income protection insurance, despite it being such a huge concern."

Mr Cain also continued by stating that quite a few of his clients found it difficult to calculate how much cover they needed.

"That's why advisers are there, to make things easier for you when you are trying to make tough financial decisions, and it doesn't have to be expensive."

xLife compares personal insurance and offers free life insurance and income protection calculations to determine how much cover you need. For a free no-obligation report, simply call 1300 135 205 or go to http://www.xlife.com.au/.

Survey findings as reported in The MetLife International Employee Benefits Trends Study, conducted between November 2010 and February 2011.

July 2011