Under Insured Australia
May 17, 2013
Australia is one of the most under insured countries in the developed world. There are approximately 4.5million working parents in Australia, of those an expected one million will suffer a serious accident, illness or death.
Australians who are under insured will see their family’s income drop by half if a tragic event occurs, and will struggle to meet mortgage repayments and pay their bills. This leaves those hit by misfortune to rely on inadequate government payments.
Of all the families with dependent children who are insured, 60 percent do not have enough life insurance to look after them for even a year if they are no longer able to work .
Only 22 percent of Australians actually have life insurance and the few who do are extremely under insured.
The average cover is $210,976, which is less than a third of what is actually required for sufficient cover, estimated to be $670,621.
Under estimating the importance of life insurance could prove extremely detrimental to individuals and their families.