Is underinsurance a problem in Australia?

August 16, 2013
Gary Bieser

Most definitely!  Findings from a Swiss Re Economic Research & Consulting report in 2007 reveals that Australia is one of the most underinsured nations in the developed world ranking 16th for life insurance density and penetration.

A study commissioned by the Investment and Financial Services Association of Australia (IFSA) in 2005, showed parents with dependents were critically underinsured by $1.37 trillion.  Thinking of that another way – only 4% of the total population with dependent children have adequate levels of Life Insurance cover.

A few more interesting facts…  While most people would never consider driving a car without motor insurance, less than a third of us insure our most important asset – our ability to earn an income.

The Australian Bureau of Statistics tells us that three in every four Australians will be diagnosed with a serious illness during their working life.

Research done by the National Stroke Foundation shows there is a stroke in Australia every 10 minutes, or 60,000 strokes per year.

Is insurance now starting to sound a little more important?  You need to ask yourself “Can I afford not to take out appropriate insurance?”.  And remember, some cover is better than no cover!

If you don’t have adequate insurance you will most likely need to sell your house, along with many other assets in an attempt to make ends meet.  This reality can have tragic consequences for the individuals involved and their families.  Financial burdens at a time of intense personal pressure often lead to family and personal breakdown.

The effect on these people is not just immediate – it can be generational.  What do you need to do right now to sort out your insurance?  A good first step is to contact our Financial Advisor, Pasquale Triulcio on 0412 665 355 or 02 8765 8702.  Pas will be able to make an assessment of your insurance requirements and explain clearly what steps you need to take to put adequate insurance in place.

Posted in: Insurance

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