Australia faces an underinsurance crisis, leaving many exposed to unexpected life challenges. A quick scroll on social media might reveal fundraisers for families who’ve lost a loved one. Tell-tale signs indicate a worrying trend and numerous Australians lack adequate insurance. This article delves into the reasons and suggests how you can avoid becoming another statistic.
What is Underinsurance?
Underinsurance is the disparity between the life insurance an individual or family should possess and what they actually have. Despite some getting default life insurance through superannuation, the gap persists. When delving deeper into income protection and disability cover, the figures are even more concerning.
Why Many Australians are Underinsured:
Both individuals and businesses, at various stages, grapple with this issue, making it a pervasive concern in Australia.
Who is Most Vulnerable?
You could be at a higher risk of underinsurance if you’ve:
Recognising your risk can lead to more informed insurance decisions. Start by assessing assets and liabilities, understanding your monthly finances, and comparing your current insurance to what you genuinely require. Neglecting this can leave you exposed during major life events, be it health crises, property damages, or job losses.
Strategies to Counteract Underinsurance:
Underinsurance can spell disaster during life’s unpredictable turns. But with informed choices, regular check-ins, and leveraging financial advice, it’s possible to ensure you and your loved ones remain shielded against unexpected financial burdens. After all, preparation today can guarantee peace of mind tomorrow. If you’re at the onset of your financial planning journey or seeking specialised guidance, it’s advisable to connect with a Financial Adviser. Your future, and that of your loved ones, deserves the security and peace that comprehensive insurance can provide.
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.