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Life insurance is  more accessible than you might think.

10.11.2017 by GTC Financial Services

While 81% of Australians think life insurance is too expensive, 61% overestimate the cost.[1] But as you can see through the examples below, compared to other things that we spend our money on*, life insurance is not that expensive at all.

  • $0.71 per day would be the approximate premium for a 35 yr old female, non-smoker applying for $500,000 of Life cover[2]
  • $0.88 per day would be the approximate premium for a 35 yr old male, non-smoker applying for $500,000 of Life cover[3]
  • $2 per day ($700 a year) is the average amount of credit card interest Australians are paying if their interest rate is between 15-20%[4]
  • $2.96 per day ($90 a month) is the average amount Australians pay for building insurance[5]
  • $3 per day ($106 a month) is the average amount Australians pay for car insurance[6]
  • $3.54 is the Australian national average price for a cup of coffee[7]. There are roughly 240 working days a year. If you were to buy just one cup of coffee every day that adds up to $849.60 per year ($70.80 a month)
  • $4.57 a day ($32 a week) is the average amount Australians spend eating out in restaurants[8]
  • $8.40 per day is the average amount spent on alcohol. (average of 2.1 standard alcoholic drinks).[9] Drink prices vary significantly according to location, but assuming even $4 per drink, (to account for bottle shop and bar price variation) the average Australian could spend $3,066 per year on alcohol

*Figures are an estimate only based on research provided

But life insurance companies don’t pay claims - right?

Unfortunately many Australians still believe that life insurance companies never pay out claims when you need them[10]. This is a common myth, but by working with your financial adviser to ensure you take out the right cover and file any claims correctly, you will be paid for all eligible claims. Just check out some of these AIA Australia statistics[11].

  • An average of over $2 million in Death claims was paid every working day during 2016
  • 17.9% of these claims were made by people under the age of 35 years, 27.3% were made by claimants between 45 and 55
  • 38% of Death claims in 2016 were for cancer (e.g. neoplasms) 
  • An average of over $1 million in Income Protection (IP) claims was paid every working day during 2016
  • 38.4% of these were paid to people between 45-55
  • An average of over $1.2 million in Total Permanent Disability (TPD) claims was paid every working day in 2016

To find our more contact our office on 49725177.

[1] http://www.lifewise.org.au/facts-research

[2] AIA Australia, Priority Protection product, effective 25 August 2017, Stepped, AAA Occupation, Non-smoker, Victoria, Yearly premium, No AIA Vitality, includes policy fee and initial selection discount

[3] AIA Australia, Priority Protection product, effective 25 August 2017, Stepped, AAA Occupation, Non-smoker, Victoria, No AIA Vitality, Yearly premium, includes policy fee and initial selection discount

[4] https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock as at 2 Aug 2017

[5] https://www.canstar.com.au/home-insurance/home-and-contents-insurance/a-beginners-guide-to-home-and-contents-insurance/

[6] https://www.canstar.com.au/car-insurance/what-does-car-insurance-cost/

[7] http://www.goodfood.com.au/it-pro/melbournes-coffee-prices-fastest-growing-in-the-country-20140424-zqytk

[8] https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australian-spending-habits

[9] http://www.abs.gov.au/ausstats/abs@.nsf/mf/4307.0.55.001/

[10] https://www.finder.com.au/underinsurance-in-australia

[11] http://www.aia.com.au/en/adviser/partner-with-us/claims-philosophy.html

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

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Topics Personal Insurance

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