WHY DO WE HAVE LIFE INSURANCE?
The answer is simple - it is the most cost-effective method of providing individuals with cash when they need it most - in times of crisis.
Prior to age 65, three out of every four Australians will suffer a serious illness or injury. As an example, the financial impact of a person suffering cancer is estimated to be between $10,000 to $60,000 (lost productivity and out of pocket expenses). This does not take into consideration the continued costs of paying off a "typical" mortgage of $350,000. Individuals require additional financial resources when unexpected events occur, like injury, illness, incapacity, or even death. There are a number of financial resources a person can rely upon: charity (Salvation army, St Vincent de Paul, Wesley Mission etc), family, Centrelink benefits, savings, or life insurance.
CommInsure, September 2009
"I’VE GOT LIFE INSURANCE INSIDE SUPER"
If you’re an employee, chances are you have some group life insurance cover inside your super fund. But do you know much you actually have?
Group life insurance is generally based on your level of salary. But it doesn’t take into account your level of debt, or the number of dependants you have – factors crucial to determining your insurance needs.
You should be able to find out your current level of cover by checking your latest super statements, or by calling your super provider.
While you’re at it, you should also check how much it’s costing you in premiums each year. If you have multiple super accounts from different employers, you may be paying two sets of insurance premiums.
It’s easy to put insurance off until a time when you think you need it. Problem is, you never know when that’s going to be. The best way to protect yourself and your family from the unexpected is to do it now.
ING - The End of Excuses - October 2009