One of the most asked questions I’ve received as a Financial Planner from clients is ‘Do I have enough cover?’. Recent surveys continue to highlight that Australians are one of only a few developed nations in the world that remain highly underinsured. Underinsurance is being viewed as a grave matter by the Australian government as it is likely to cost our nation billions of dollars in forthcoming years.
If Australians do not have adequate insurance in place (life insurance, disability insurance, trauma insurance and income protection insurance) then the financial burden that will arise from a serious illness or an unfortunate accident can cause severe hardship that many Australian families may not be able to survive.
It is estimated that at least 20% of the Australian population between the ages of 21 and 64 will suffer some unfortunate event in their lives that will leave them incapable of working. This could be an unforeseen accident, injury at the workplace, or contracting a terminal illness of which there is no history in the immediate family.