Life insurance is often overlooked by many Australians due to the perception of it being a big expense or that we believe that unforeseen event will never happy to us! Here, we bust the top three myths when it comes to personal insurance.
Life can be full of surprises, unfortunately not all of them pleasant. And when the unexpected happens, the need for life insurance is more important than ever. As with any insurance, we all hate paying for it, but love to have it when we actually need it. Take car insurance for example. We dread the time of year when our policy is due for renewal and we have to fork out the cost of the premium, but if the unfortunate event of an accident occurring, we have peace of mind that our insurer has our backs and can get us on the road again in no time. We’re so glad we paid that policy and would have felt a huge dent in our pockets (plus all the inconvenience!) if we didn’t!
Same goes for life insurance, but it’s one of the insurance policies that only a small percentage of us have. Why? It’s always a case of “…it won’t happen to me!” But how can you be so certain? Here’s our top three myths busted when it comes to avoiding life insurance.
“I’m young and healthy, I don’t need life insurance!”
Unfortunately, fatal injuries or illnesses don’t rule you out just because you may be young. In fact, lifestyle habits may put young gen Ys at more risk! The 18-30 age group tends to travel more and be more adventurous whilst overseas which could put them at risk of serious injury. Some of the most common causes of fatal accidents to Australians include road and transport accidents, drowning and natural disasters, all of which may happen on an adventure holiday. It’s not all bad news. Some insurers offer discounts to young, healthy people, so why not put a plan in place to protect your future now?
“Life insurance is too expensive”
It’s too expensive not to have life insurance! Did you know, the average total out of pocket expense for a cancer patient is often around the $150,000 mark? This includes loss of income, health care costs and other expenses. As mentioned previously, you can’t escape serious illness just because of your age or good health, unfortunate events can happen to anyone at any time. Not having life insurance in place could cost you and your family everything. Having the right policy behind you can help you deal with unforeseen expenses and generally take the financial pressure off. Don’t risk being left with piles of bills to take care of – take the steps to get income protection in place before it’s too late.
“I have cover through my superannuation fund”
Many people have limited amounts of life insurance within their superannuation. The level of cover is generally based on age and not on your financial requirements, it is in most cases unlikely that the cover will be sufficient. Not all types of insurance are available from super funds. Funds typically offer members access to life insurance cover and any occupation total and permanent disability insurance. Fewer funds offer their members access to income protection insurance, and trauma insurance cannot be purchased through super. The quality of the default cover offered, often does not compare well with an adviser recommended policy.
We hope that’s got you thinking about the importance of life insurance and the fact that we can’t predict our future! Bite the bullet and take the steps to get a policy in place. It will give you peace of mind and protect your financial future if the unexpected occurs. Unfortunately, age and good health doesn’t automatically eliminate you from some of life’s fatal illnesses or injuries.
Head over to our financial planning pages to find out more about the range of covers available or contact us to chat with our financial planners. Make the first step to secure your financial future.
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