95% of families do not have adequate levels of insurance

by Andrew Newman
in Insurance
19 Apr 2010 | 0 Comments

Most of us know someone, or know of someone, who has been impacted by tragedy or hardship - the death of a parent, a friend in a serious accident, the diagnosis of cancer or a mental illness. These events create enormous strain on individuals and families, often made worse by the substantial financial burden that results when someone is unable to work for an extended period of time. In many cases, this financial burden could have been avoided with adequate levels of insurance.

A recent research report commissioned by Lifewise (a public awareness initiative of the Australian life insurance industry aimed at encouraging Australians to take appropriate steps to protect themselves from the financial hardship that can result from accident, sickness or death) quantifies, for the first time, the number of families who will be impacted by underinsurance during their working lives.

It looks at the financial impact on the typical middle-income family with young children and the expected cost to government over the next 10 years. The results are startling:

1 in 5 families will be impacted by the death of a parent, a serious accident or illness that renders a parent unable to work.
The typical Australian family will lose 50% or more of their income following a serious illness, injury or the loss of one of parent as a result of underinsurance.
95% of families do not have adequate levels of insurance.
Underinsurance is expected to cost the federal government $1.3 billion over the next 10 years.

This avoidable outcome highlights the importance of every Australian making a conscious and informed decision about protecting their most important asset - their ability to earn an income.

The above information has been sourced from the Lifewise-NATSEM Underinsurance Report.

If you would like to secure the financial future for you and your family, then I urge you to have your insurance cover reviewed.

Important Information

Information provided in this newsletter is general in nature and does not constitute financial advice. While I have taken reasonable care in providing this information, it should not be construed as being specific to your investment objectives, financial situation or particular needs. It's important for you to consider these matters before making any financial decision and we recommend you seek financial advice.

95% of families do not have adequate levels of insurance

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