Australians that have not purchased life insurance plans often believe that, bad things won’t happen to them. However, if something did happen to them, then what is next, who is going to protect their family when they are no longer there to fend for their families. Approximately 45% of all Australians are underinsured by $1000 a month for income protection insurance while thousands of Australia families are left with a small payout of only $91,000 when the primary bread winner such as their partner dies.
Listed below are some facts that should be considered when you are looking for the right insurance cover to protect you and your family.
i). Superannuation plans that offer life insurance cover, only offer 20% of the required protection.
ii). More than 50% of Australians that have purchased life insurance are underinsured by $100,000.
iii). The total cost of raising two children for 12 years in Government school and 3 years in a University is approximately $537,000.
iv). More than 81% of the Australian population believes that life insurance is too costly, but in actuality 61% of this population has over estimated the cost of life insurance plans.
v). In total Australian families are underinsured by $1.37 trillion.
vi). While 83% of Australians purchase car insurance to protect them against car troubles, only a mere 31% Australians have insured their salaries for income protection.
When you are deciding if you need life insurance or not, you should consider your friends, family and other important people in your life. Majority of us know people who have been diagnosed with a terminal illness such as cancer or know people who have lost a partner suddenly. These issues should be kept in mind since they impact our ability to earn a steady income and meet financial commitments while providing for our loved ones.
Although no one wants to consider the worst case scenario, it is important to do so, while planning for the future so that you can protect your family adequately.
In addition to emotional pain and suffering, the cost of a funeral alone can come as a huge financial burden for the people who have lost a loved one. The average cost of funerals can come up to $15,000 and inadequate funds can cause additional problems for families who already are suffering with grief when it’s time to say good bye to a family member.
Taking out insurance plans that are comprehensive and offer maximum benefits is the best way to preserve your family’s lifestyle and enable yourself to pay debts, pay bills and clear other financial commitments. Purchasing adequate life insurance can also help you enjoy time with your family without worrying about money all the time.
Most people do not notice the important benefits of life insurance plans until they need them the most. Having sufficient funds to help your family during difficult times and having the freedom to choose lifestyle options are invaluable.