Do You Have Enough Life Insurance Cover?

Post by Sharat on March 31, 2010 · Under Featured Articles, insurance, Life Insurance, Personal Finance · 1 Comment

Fact: Only 4% of Australian families who have dependent children have adequate life insurance.

Whilst most Australians who work have some kind of life insurance included as part of their superannuation, more often than not, this may be inadequate to cover those that depend on them, in the event the worst happens.

Many Australians who do not own a life insurance policy, often have the mentality of ‘it won’t happen to me’. In the event something does happen, many will have failed to provide their family with enough life insurance cover to help them once they have gone.

It is estimated that nearly 45% of Australians are underinsured. Many Australian families are left with an average payout of just $91,000 after the death of their primary income earner.

When thinking about taking out life insurance, below are some facts you should consider:

Over 50% of Australians are underinsured by $100,000 for life insurance.

On average, the life insurance cover that is included in most Australian’s superannuation is 20% of what is actually needed.

Over 81% of people say life insurance is too expensive; however 61% of people over-estimate the cost.

The cost of raising two children at Government schools to year 12 and then 3 years of university is around $537,000.

Australian families are critically underinsured, by approximately $1.37 trillion.

While 83% of Australians have car insurance, only 31% insure for income protection.1

When you think about whether you need a life insurance policy, you really need to consider the people in your life who depend on you.

We all know someone who has suffered from cancer, or lost a partner and loved one suddenly or unexpectedly. These are issues that impact on our ability to earn an income and continue meeting our financial obligations while providing for the future of ourselves and our family.

It is extremely unpleasant to think about the worst case scenario and no one likes doing it, but more often than not, planning for the future is being able to deal with the curve balls that life can cruelly throw at you.

Even funerals can be a huge financial burden, coming at a time when your loved ones are suffering emotionally. The average cost of a funeral is as high as $15,000.

Having a life insurance policy lets your loved ones say goodbye in a dignified manner without having to deal with the stress of a financial burden. It lets them continue their lifestyle, helps them pay the mortgage, rent or any other monthly expense, and lets you enjoy life safe in the knowledge your family is protected.

Suncorp has a great life insurance plan, called Suncorp Family Protect Life Insurance. For as little as $2.70 a week, you can rest easy knowing your family is taken care of in the event the worst happens to you.

You can choose a lump sum payment up to $400,000, the Suncorp Family Protect Life Insurance plan pays out a lump sum of money in the event of your death or upon diagnosis of a terminal illness. The policy has Guaranteed acceptance, this means there are no medical tests required, you simply need to apply and it just takes a few minutes to arrange immediate cover for your loved ones.

Not only that, you can save as much as ten per cent by applying on line. Of course there are lots of other insurers out there to choose from, but none that offer as quickly as Suncorp. Whatever you do, make sure you get covered today.

Chris Johnson writes to make Life Insurance easier to understand.

Compare Australian Life Insurance Deals