Life insurance statistics

Often, it is difficult for clients to recognise the importance of life insurance. The statistics provided below may help to highlight the necessity of insurance, the lack of government assistance, and how life insurance can provide financial relief in their time of need. Underinsurance Personal insurance Most people have some level of default insurance within their superannuation. However, cover will usually be limited to Term Life and TPD, with Income Protection offered on a voluntary basis. Trauma cover is not available. Default levels of cover will also generally be based on age, and are likely to reduce over time. Self-employed people and home makers may not have any insurance at all. In other words, actual insurance is as low as 17% of adequate insurance levels, for Australians aged 45 – 64. Adequate insurance levels are based on replacement of income, through Income Protection and TPD policies. It was found that most other age groups have an underinsurance rate of approximately 55%. 1 ‘Lifewise/NATSEM Underinsurance Report – Understanding the social and economic cost of underinsurance’, February 2010 2 Underinsurance – Disability Protection Gap in Australia – KPMG January 2014 Read More