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Undercovered
and Overexposed
Australia’s
underinsurance problem – are you part of it ?
According
to the Investment & Financial Services Association (IFSA),
Australians are underinsured to the tune of $ 1.370 billion. In
reality, many Australians and their families are significantly
underinsured and, as a result, deeply exposed to the financial
risks that flow from injury, illness and loss of life.
By
world standards, Australians are financially sophisticated. But if
we are so smart, why are we so badly underinsured?
Why,
for example:
- Is
there a 1.3 billion dollar gap between the life cover Australians
have and what they need?
- Are
70% of small business owners doing business without Income
Protection?
- Do
only 4% of average working families with children have the level of
life cover recommended by experts to cover their needs?
Is it
because we are enjoying an extended economic boom or is it that
personal risk insurance is so intangible that we don’t think it’s
worth the money ?
Whichever
it is, it’s a dangerous error!
Consider
–
- On
average, Australian families now need 35.2% of their income to pay
off their home loan.
- According
to a recent AMP/Natsen study, it costs around $310 a week to raise
2 children.
- There
is a one in three chance you will be off work for 3 months due to
illness or injury before you turn 65.
- One
third of males and a quarter of females will be hit by a major
illness like cancer before they turn 75.
- Almost
one third of Australians over 45 who retire early, do so due to ill
health and injury.
In
short, many Australians are not just underinsured, they are
overexposed, carrying large amounts of debt, without the back up
they need if injury, illness or untimely death strikes
Who
can help?
The
right mix of insurances can protect you and your family from
financial distress if unfortunate events occur. With the right
insurances in place you are less likely to have to draw down on
your savings, or put your home, your children’s education and your
long term plans at risk, because you haven’t protected yourself
against disaster.
Your
Pentad Financial Adviser can help you arrange those insurances,
find you the right products at the right prices and make sure your
insurance arrangements are integrated into your overall financial
plan.
Call
us to today on (03) 9813-0133 and allow us to help you find
financial peace of mind. | 