Life insurance – can you afford not to?
I remember reading an article which had 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 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 article also indicates that another apparent reason for the low uptake in term life insurance 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 Momentum Wealth Risk Services, so now there’s no excuse: 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?
Justin McManus is a Corporate Authorised Representative of Marsh Pty Ltd Australian Financial Services Licensee No. 238983. This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your objectives, financial situation and needs.