Many people have less than half the life insurance cover they need. Why is this the case?
Lets explore the most common myths about life insurance.
Myth 1: Life insurance is not affordable
For most people, insurance is very affordable. For example, the monthly premium for a 35-year-old male nonsmoker applying for $500,000 of life insurance cover would be approximately $30, while his female counterpart would pay approximately $25. That's peace of mind for less than the cost of a coffee a day. And if you have some existing cover, increasing this to adequate levels will cost you even less.
Myth 2: Most people have enough insurance
Unfortunately, this isn't the case. In fact, research shows that 60 per cent of families with dependent children do not have enough insurance to cover the household expenses for a year if the family breadwinner were to die. And on average, those who have death cover through their super policy have less than half the level of cover they need.
This is about what YOU and your family need - don't worry what other people may or may not have.
Myth 3: I have enough insurance inside my superannuation
The minimum level of cover provided by your super fund is set with all members in mind and therefore may not be enough to cover your financial obligations. Contact your super fund to find how much cover you actually have and then consider whether it's sufficient for your requirements.
Myth 4: I don't need insurance. The government will look after me if I get sick or injured
This would be nice but it's not necessarily the case. Centrelink pays a maximum disability pension of $671.90 per fortnight for singles and $506.50 (each) for couples. Would this cover your current lifestyle?
Myth 5: Life insurance companies don't pay claims
Life insurance companies pay out almost $10 million every working day in claims to customers. This figure would be even higher if people had adequate levels of cover.
Life insurance should be an integral a part of your family's financial planning like other forms of financial protection, such as your car and house insurance. Do you know exactly how much cover you have and how much you actually need? This is something you should be able to answer YES to.
Make sure you have enough life insurance coverage so that your family is not faced with a financial crisis as well as an emotional one if something were to happen to you.
It's important for your family's financial future that you base your decisions on facts rather than myths.
Lets explore the most common myths about life insurance.
Myth 1: Life insurance is not affordable
For most people, insurance is very affordable. For example, the monthly premium for a 35-year-old male nonsmoker applying for $500,000 of life insurance cover would be approximately $30, while his female counterpart would pay approximately $25. That's peace of mind for less than the cost of a coffee a day. And if you have some existing cover, increasing this to adequate levels will cost you even less.
Myth 2: Most people have enough insurance
Unfortunately, this isn't the case. In fact, research shows that 60 per cent of families with dependent children do not have enough insurance to cover the household expenses for a year if the family breadwinner were to die. And on average, those who have death cover through their super policy have less than half the level of cover they need.
This is about what YOU and your family need - don't worry what other people may or may not have.
Myth 3: I have enough insurance inside my superannuation
The minimum level of cover provided by your super fund is set with all members in mind and therefore may not be enough to cover your financial obligations. Contact your super fund to find how much cover you actually have and then consider whether it's sufficient for your requirements.
Myth 4: I don't need insurance. The government will look after me if I get sick or injured
This would be nice but it's not necessarily the case. Centrelink pays a maximum disability pension of $671.90 per fortnight for singles and $506.50 (each) for couples. Would this cover your current lifestyle?
Myth 5: Life insurance companies don't pay claims
Life insurance companies pay out almost $10 million every working day in claims to customers. This figure would be even higher if people had adequate levels of cover.
Life insurance should be an integral a part of your family's financial planning like other forms of financial protection, such as your car and house insurance. Do you know exactly how much cover you have and how much you actually need? This is something you should be able to answer YES to.
Make sure you have enough life insurance coverage so that your family is not faced with a financial crisis as well as an emotional one if something were to happen to you.
It's important for your family's financial future that you base your decisions on facts rather than myths.
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