Have you got insurance? Australians are currently one of the most under-insured people in the world. Why do you think Australians don't like to insure themselves?
They prefer to insure their cars, their homes, their possessions, boats, pets, holidays but when it comes to insuring their own lives or the lives of their families they overlook it and leave it out of their plans.
To help raise awareness of this shortfall, September is Life Insurance Awareness month. The Australian Life Insurance Movement has been put into place to make people more aware of the severe problem of under-insurance in Australia.
Some stats that have come to light are:
- 50% of people don't really understand insurance terms.
- 1/3 of people don't realise that their super fund has life insurance cover too.
- Lots of Aussies really don't know how much insurance cover they actually need. This means that actual cover versus the cover required is:
- Average death cover: $189,000 vs. Average Cover required: $431,000
- Average level of TPD: $162,000 vs. Average cover required: $437,000
- Average level of IP $2,700 a month vs. average level required: $3,750
- For Total and Permanent disability cover it was found that 74% of Australians are under-insured by $100,000 or more.
- More than 50% of respondents were under-insured for cover in the unfortunate event of their death.
I am participating in the LIFE Awareness campaign. I received a VISA gift card for this post courtesy of Life Insurance Finder via Digital Parents Collective. I am also in the running to win an iPad3. As always, all opinions are purely my own.