B & L Financial Services - Insurance Planning

B & L Financial Solutions

Do Australians have the right priorities in life?

Life is about enjoying the things that matter to you most. Most employed people have some insurance through their super; however, research has consistently shown that the level of cover leaves many exposed to the risk of financial hardship in the event of accident, sickness or death.

Why is this a problem? More than three in four Australians will be diagnosed with a serious illness in their working life. The majority will rely on savings, selling assets in an uncertain property market or government welfare. And a significant proportion of Australians would face financial hardship if they were to have an accident, become sick or die. While most insure their home and would never consider driving a car without motor insurance, less than a third of Australians insure their most important asset, their income.

60 per cent of families with dependent children do not have enough insurance to cover the household expenses for a year if the family breadwinner were to die. (Ref: The Investment and Financial Services Association research 2005)

The Victorian bushfires in February 2009 highlighted just how important it is to have enough cover in place. Many people died or were injured and unable to work. Around 80 per cent of those people did not have basic life insurance policies in place. Many of those who were covered had insufficient sums insured to support their families financially in the aftermath.

It is wise for you to review your insurance needs as and when your circumstances change. For example, when taking out a mortgage, getting married, starting a family or building a business. No matter what your circumstances are, life insurance helps preserve your financial freedom, allowing you to enjoy the life you want for yourself and your family.

It’s a fact that many people are affected by unexpected illness or injury during their life. Statistics which help highlight the risk for your clients and for every Australian are listed below.

 

The facts of life

  • 50,000 Australians have heart attacks every year. ( Heart Foundation, Australian Facts 2004: Heart, Strokes and Vascular diseases 2004)
  • One third of women and a quarter of all men will suffer cancer at some stage in their lifetime – over half of whom will live for longer than five years after diagnosis.  Cancer Council: , Cancer in Australia: an overview, 2008 Australian Institute of Health and Welfare (published December 2008)
  • Half of all men and a third of women will be diagnosed with cancer before the age of 85. ( Cancer Council: Cancer in Australia: an overview, 2008 Australian Institute of Health and Welfare (published December 2008)
  • Over 1600 people die on Australian roads every year, most aged 26 – 59 years. ( Australian Government, Road Deaths Australia 2015)
  • One stroke event occurs in Australia every 12 minutes. 6 Australia’s Health 2008, (Australian Institute of Health and Welfare, June 2008)
  • Just under half the population with an arthritis-associated disability are aged 15-64.(6 Australia’s Health 2008, Australian Institute of Health and Welfare, June 2008,)
  • With symptoms generally developing between ages 20-40, multiple sclerosis is the most common chronic central nervous system condition among young Australian adults. ’Multiple Sclerosis – a $2 billion disease in Australia’ Media release by MS Australia,

If you would like further information on Insurance Planning please contact our office.