Are you underinsured? There are so many insurance options available, it can be hard knowing what insurance options you need – alternatively, you may deliberately decide to avoid certain types of insurance for various reasons.
Too many people in Australia are underinsured and there are many reasons for this: some of the major excuses for avoiding life insurance or income protection insurance is that it is too expensive, insurance companies don’t pay out, you feel you do not need the insurance, or it is too difficult to find and purchase the cover you need.
However, there are even more reasons why more Australians need to seek life insurance and income protection insurance to safeguard their financial well-being.
Why you Need Life Insurance and Income Protection Insurance
One of the major reasons for not purchasing insurance cover is that many people feel they do not need the insurance. You may be surprised by how these insurance options could benefit you.
Some people may avoid purchasing income protection insurance because they expect to receive compensation from their Worker’s Compensation policy; however, the Worker’s Compensation policy only covers accidents or illnesses that arise as a direct consequence of your employment.
If you have an accident or if you fall ill outside of work, worker’s compensation will not cover you, which is where income protection insurance comes in. An income protection policy provides a replacement income if the policyholder is unable to work because of an illness or an injury, and is provided in the form of a lump sum payment.
When it comes to life insurance, the avoidance usually occurs because people do not often think of the financial needs of their loved ones after their death, especially if they are young.
However, the reality is that Illnesses, chronic conditions and injury can occur for anyone and it could potentially lead to an untimely death. This is why it is appropriate to purchase life insurance at any age.
A life insurance policy will pay a death benefit if the policyholder dies or is diagnosed with a terminal illness and has less than 12 months to live. We believe that the aim of life insurance is to provide the deceased’s family and loved ones with sufficient money to repay their debts, continue to maintain their standard of living and achieve any further financial objectives they require.
Insurance Claims
Some people can be critical of insurance companies when it comes to paying out insurance claims, however this negative view is often unfounded.
Commonwealth bank is one of the life insurance and income protection providers that we compare using our comparison service. Based on their analysis of data shared by several life insurance companies in Australia, they found that in 2010, an average payout of $14.3 million was paid to 245 Australians for each business day by these life insurance companies.
This data serves to debunk the myth that insurance companies seldom pay their policyholders the benefits mentioned on the policy. Any legitimate claims that abide by the terms and conditions of the policy purchased are likely to be paid out. If you divide the $14.3 million benefits paid to 245 people, it amounts to approximately $60,000 per person per working day. This is a very significant amount of money.
Financial Benefits
Many people may avoid certain insurance policies due to the cost, although the benefits provided often outweigh the cost involved in making an insurance policy purchase.
Every year, thousands of people suffer an injury, contract an illness or die unexpectedly. If this were to happen to you today, how would your family cope with the emotional upheaval as well as the financial uncertainty? For example, how would they pay for:
- The monthly mortgage or rent
- Living expenses
- The cost of education for your children
- Any other liabilities like loans, credit cards etc
This is what you need to ask yourself before deciding to turn down the option of insurance cover. When you undertake life insurance and income protection comparison, you can have security knowing you are one step closer to having financial security for your family when it is needed most.
Cover Australia Makes Insurance Easy to Understand
The last reason many people steer away from insurance is because it is too hard to pick and choose the most appropriate amounts and types cover for their needs. This is where the experts at Cover Australia come into the picture.
For the past 27 years, Cover Australia has been a leading provider of insurance solutions to many Australians. We provide advice and guidance that addresses your concerns completely. We also provide superlative levels of service. Additionally, we have the requisite experience to individually tailor life insurance products to your needs and budget.
These traits make us one of the most professional and knowledgeable risk advice firms in Australia. We will compare life insurance products for you and offer the best solution to fit your needs
Avoid putting off buying life insurance. Invest in your life today. Call us on 1300 366 817 for more information. Have peace of mind knowing that Cover Australia will be at hand to tide over any financial difficulties your family might face.