|
|
Poll reveals 40% are living on the brink
A recent Artog Survey found almost half of all Australian families would be pushed to the brink of financial ruin in the event of their death or incapacitation.
|
Survey reveals the lack of sufficient life insurance awareness in Australia
The need for life insurance is more real than it has ever been with the price of medical care and day-to-day expenses such as food and petrol spiraling upwards. However, the unfortunate truth is that some Australians either do not have affordable access to it; are uneducated on just how important this coverage is; or don’t know how to find life insurance on their own.
|
Life Insurance Assets
Superannuation fund assets have recently been growing more rapidly in Australia than in other major world markets. Superannuation schemes have now largely displaced traditional life insurance policies in Australia, and experts have singled out Australia as a model of good practice in the management of the superannuation market.
|
Life Insurance for seniors
One insurer recently introduced a new life insurance policy for people aged between 65 and 90, with claims being based on ‘loss of independent existence’. Other insurance companies are expected to follow suit in responding to the needs of this growing segment of the Australian population.
|
Life expectancies and life insurance
Demographic characteristics and lifestyle factors are taken into account in calculating life insurance premiums. Traditionally, women have benefited from lower premiums due to their longer life expectancies. Recent statistics from the US, however, reveal that the gap between the life expectancies of men and women is closing, largely due to changes in lifestyle over the past few decades. It is yet to be seen what the impact on life insurance premiums will be.
|
Trends in Life Insurance
The Australian life insurance industry has changed significantly over the past decade, with assets shifting from traditional life insurance policies to superannuation products. Australians are increasingly taking out risk insurance policies, however, there is declining interest in life insurance as an investment.
|
How much life insurance do I need?
The amount of life insurance to purchase is often a difficult figure to derive. There's no simple formula, but here are a few simple guidelines to help you make a wise decision.
|
Life insurance is not created equal
Factors to consider when purchasing life insurance go beyond the amount of death benefit. When purchasing a policy, consider the carrier itself and its financial strength, as well as the terms of the policy.
|
Riders and additions
Life insurance policies differ in content and coverage and the presence of riders can offer you additional, specialised coverage. When comparing policies, always check for the presence of riders so you can make an apples-to-apples comparison.
|
Can I be turned down for life insurance?
There are cases in which a carrier may turn you down for life insurance, but don't despair. Not all carriers follow the same procedures, and while one may reject you another may welcome you.
|
Drawing against your life insurance
Your life insurance policy may be one of your largest assets. Borrowing against this asset may be advantageous for use with major purchases, but carefully weigh all the alternatives before drawing against it.
|
|
|
Balancing superannuation with life insurance
Aside from property, the two largest assets Australians often have are their superannuation fund and their whole life insurance policies. The two are both vitally important for retirement planning, and serve different, but complementary purposes.
|
Regulations and consumer protections
A number of Australian regulations and requirements exist to ensure that your rights as a life insurance customer are protected. You should also ensure your carrier has all the necessary licenses to operate.
|