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Do I need insurance?

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DO I NEED INSURANCE?

The Answer:

If someone will suffer financially from you dying or not being able to work.

Under-insurance

  • 83% of Australian’s have insurance for their car
  • Only 31% insure their greatest asset… their ability to earn an income
  • Most Australian’s think it won’t happen to them… “She’ll be right mate, won’t she?”

“She’ll be right – Nothing will happen to me”

A typical day in Australia:

  • 220 people will be diagnosed with cancer
  • There are 132 major coronary events, of which half are fatal
  • 47 people will undergo coronary artery bypass-surgery
  • 53 people will undergo coronary artery angioplasty procedures
  • 34 people under the age of 65 will have their first stroke

What a difference a day makes!

Source: Australian Institute of Health & Welfare

The Problem is……

If you don’t have adequate insurance how will you be able to pay for:

  • Medical expenses
  • Food, utilities, living expenses
  • Schooling
  • Funeral expenses
  • Credit cards, personal loan debts
  • Mortgage

You can’t plan how to invest your income before you haven’t created certainty and protected your income.

Mortgage… what do people do when they’re going to miss a payment?

 

We don’t think about personal insurance

Recent survey of young families with household income/assets (excluding the family home) of over $50,000 found that only:

  • 48% had life insurance
  • 22% had critical illness (trauma)
  • 19% had income protection

BUT

  • 78% had car insurance
  • 80% had home & contents insurance

The Problem is……

  • 31% of Australians aged between 18-59 do not have life insurance
  • 80% believe they are adequately covered, but usually have only 29% of what they actually require!
  • Why do so few people have life insurance?

Why?

  • I’m covered by the life insurance in my super fund
  • It’s waste of money
  • I don’t think I need it
  • I don’t like to think about death or serious injury…

Under Insurance 

  • A recent Rice Warner study estimated the underinsurance gap in Australia is a staggering $1,811 billion.
  • 5.4 million families at risk of financial hardship if either parent dies.
  • $680,000 is the amount of life insurance needed for a typical middle-income Australian family with two children… $258,000 is the current median level of life insurance.
  • 4,400 parents with dependent children die each year.

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