Why do I need it?
More than four-fifths of Australians insure their car, but less than a third of us insure the source and support of our lifestyles - our income1.
Consider this: a 40-year-old earning $40,000 per year (increasing 5% per year) will earn $1,909,000 in total by the time they reach age 65.
This makes your ability to earn an asset worth protecting.
Insurance is one of the most neglected aspects of the average person's financial plan. In fact, only 5% of Australian families have an adequate level of insurance to help protect them financially2.
If there is one question people claiming on their insurance ask is 'How much will I be receiving?' before asking themselves if it will be enough. None ask if they need it.
1 TNS/IFSA, July 2006, Investigating Income Protection in Australia.
2 Lifewise and NATSEM (University of Canberra) 2010, The Lifewise/NATSEM Underinsurance Report, Understanding the social and economic cost of underinsurance.
3 Department of Human Services, May 2014.
4 Australian Bureau of Statistics, November 2013, Average Weekly Earnings (6302).