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Life insurance - can you afford not
to?
A recent article in the Sydney Morning Herald (SMH) highlighted some worrying facts and figures regarding
life insurance. One of these was a report from the Australian Bureau of Statistics which revealed that, on average, 12 parents of dependent children die each day in Australia. And of these, only 4% will have sufficient
life insurance to assist their families. This means that, each year in Australia, roughly 4,200 parents leave their families exposed to financial hardship or even ruin.
One of the reasons behind the low uptake of life insurance protection in Australia is thought to be the confidence that employees place in the life insurance component of their superannuation fund. However, the same SMH article points out that estimates show that the average worker would not have much more than $70,000
life insurance cover via their superannuation fund – a figure which represents only about 20% of estimated average needs.
The SMH article also indicates that another apparent reason for the low uptake in
life insurance cover is the general perception that it’s just too hard to obtain protection. And even if it’s not too hard, it’s just too much work, not just to apply, but to try to understand the subtle differences between the various life insurance products.
The good news is that an increasing number of life insurance companies are developing simpler products which are not just easier to understand, but which also require less ‘hoops’ to be jumped by the applicant.
These life insurance products are also available through licensed insurance brokers, so now there’s no excuse, just the question: if you die tomorrow, will you fall into the 4% that have sufficient life insurance cover, or will you be one of the remaining 96% that leaves their dependents to cope with the situation?
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May 2007 Disclaimer
The information provided
is general in nature and does not take into account
your particular insurance needs, financial situation
or investment objectives. We recommend that you speak to
an xlife risk advisor before you make any decision regarding life insurance. |
