Is your life worth more than $91,000?

Recent data from the Investment and Financial Services Association (IFSA) shows that Australians receive an average life insurance payout of just $91,000 when a partner dies.

IFSA's Chief Executive Officer said: "Given the average family with young children has debts totalling $167,000, these levels of cover will not protect the majority of Australians from financial difficulty following this type of tragedy."

While many Australians have insurance cover in their super fund, often the default levels are not enough to provide financial security should the unexpected happen. 

The main reasons Australians don't take out insurance are:

• They don't think a major accident, illness or death will happen to them in the next 20 years.

• Low levels of awareness and understanding.

• Perception that insurance is too expensive.

• Low priority compared to other financial commitments.

• Something they don't like to think or talk about.

Life insurance is surprisingly affordable. According to IFSA the monthly premium for a 35 year old male non-smoker is $30 for $500,000 cover. The monthly premium for a 35 year old female non-smoker is $25 for the same cover.

While life insurance is something we hope we will never need to claim on, it is unfortunate that many Australians will experience an insurable event in their lifetime.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.