Australians have a tendency to live by the the premise that “she’ll be right”. Sadly, there is more chance of something going wrong than you may think.
The Startling Truth
It’s estimated that at least one in five Australians between the ages of 21 and 64 will be incapable of working at some point due to an unforeseen accident, injury or illness.¹ Despite this, almost 95% of the population is underinsured, meaning we could be setting ourselves up for real financial difficulties should something happen.² We know statistics don’t mean too much unless something happens to you or someone you know. But we wouldn’t be doing our jobs properly if we didn’t share the most startling statistics with you.
- Every year 236,000 people of working age suffer a serious injury or illness³
- 18 families in Australia lose a working parent every day of the week⁴ ⇐ Every year 236,000 people of working age suffer a serious injury or illness³
- 50,000 Australians have heart attacks every year⁵
- One third of women and a quarter of all men are diagnosed with cancer⁶
- More than 1,600 people die on Australian roads every year, most aged 26 to 59⁷
- A stroke occurs every 12 minutes across the country.⁸
Debunking the myths
The national Lifewise campaign9 set the record straight on a number of misconceptions believed to be part of the reason behind why Australia is underinsured as a nation. These include: I don’t need insurance. The government will look after me if something happens. Centrelink pays benefits, but it might not be enough to cover your current lifestyle. Centrelink benefits are also asset and means tested. Workers’ compensation will cover me Maybe not. This only covers incidents that occur during work hours or illnesses that are a direct result of your employment. The majority of accidents and illnesses occur outside the workplace. I have enough life insurance cover in my superannuation While many Australians have life insurance cover as part of their superannuation fund, it’s important to understand that some funds offer limited types and levels of cover. You need to compare the life insurance benefits provided by your super fund with your level of debt, household expenses and financial support you want for your dependents. Life insurance companies don’t pay claims The Australian life insurance industry paid more than $7 billion in claims in 2014, according to figures from the Australian Prudential Regulation Authority (APRA) ¹º. I’ve already got enough insurance Research shows 60% of families with dependent children don’t have enough insurance to cover household expenses for a year if the family bread winner were to pass away ¹¹.
