Mythbuster: “Having life insurance is a waste”

Mythbuster: Life Insurance Is A WasteAccording to research by Rice Warner, Australia is one of the most underinsured nations in the developed world – particularly in relation to personal insurance. In fact Rice Warner’s most recent Underinsurance in Australia Report calculates that as at June 2012, the level of personal underinsurance in Australia is:

  • Life insurance: $2,166 billion
  • TPD: $7,912 billion
  • Income protection: $589 billion

Compare Income Protection Insurance

Many Australians seem to have an: “it won’t happen to me” attitude. The problem is though, that it just might.

The Risk Store publishes yearly payout figures from a selection of major life insurers. Based on the most recent figures, they advise that an average of $17.6 million was paid to Australians every working day in 2012.

That overall total was $4.4 billion to 70,989 claimants.

The 2012 claims payout breakdown is as follows:

State Awards

Term Life $1.95 billion
TPD $718 million
Trauma $555 million
Income Protection $1.16 billion

These figures are in addition to superannuation fund group insurance policies for “early retirements” due to illness, injury and death.

That’s a lot of people who never expected to claim – but had to.

Compare Income Protection Insurance

Share this article

Enjoyed reading this article?

Sign up to receive more news like this straight to your inbox

By subscribing you agree to the Canstar Privacy Policy.

Thanks for signing up!

Good things are coming your way.