It is no secret that Australian households have taken on more and more debt, with total household debt to income ratios reaching 185% in late 2020.
The boom in Australians taking on debt has been met with a decrease in Australians that have personal insurance (including Life, Total & Permanent Disablement, Income Protection & Critical Illness) by roughly 25% since 2018.
Many of us have cover (often referred to as ‘default cover’) within our super fund. A 2021 Metlife report found only 73% of Australians are aware they have life insurance in their super fund and only half know what types of cover they have.
Say you’re one of the Australians that know the cover they have within their super fund; how do you know that it is the right cover or right policy for you? Would you be surprised to hear that some Life and TPD policy cover amounts decrease with age but get more expensive each year. That doesn’t sound like a great deal, does it?
Unfortunately, not all super accounts have ‘default’ income protection which is payable if you are sick or injured and not able to work – this could for be a few months or for life.
Consider this!
You are 35 years old, married with a young family and a mortgage and expect to retire when you are 65. You earn $75,000 pa. Not taking into account changes in wage, bonuses or super contributions – you would earn roughly $2,250,000 over that 30-year span.
Now I know that no one likes to think of worst-case scenarios but say you were sick or even injured in an accident and unable to earn an income for 3 months, 12 months or maybe for the rest of your life. How would your young family survive?
Forward income is one of the biggest assets many people will have in their lives, yet so many Australians don’t protect it.
We have created an Insurance Needs Calculator which will give you a great base to compare what you currently have.
If you find out you are underinsured make today the day you do something about it.
We don’t blink when we pay our car insurance or house insurance because we know we need it (even if we don't like paying for it...)
Give your family and loved ones the certainty that they will be protected if something tragic were to happen to you.
At Hunter FP we can do the leg work for you, calculating the right cover amounts, sourcing the best policies for your situation, getting you through the application, formulating payment strategies that best suit you and ultimately – getting you and your family protected.
Call us now to see how we can help you make this happen!