The myths of life insurance

#1           It's bundled in with my super

Unfortunately whilst this is true in a lot of cases the average level of cover through superannuation would provide for only about 20% of the needs of the average Australian.  Check to see if you have enough cover in the event of death or illness.

#2           They won't insure me because of current health problems

The Industry operates on a risk assessment basis, which is determined by an underwriting process.  What this means is those that have a higher risk are simply required to pay extra premiums.  It is only a very small few who won't be covered at all.

#3           I already have enough

The recommended level of life insurance to maintain your current lifestyle is around 10 times your net earnings.  While most families insure their cars and homes adequately, most don't have enough to cover their most important asset... themselves.

#4           It won't happen to me

Almost 66% of Australians are inadequately insured because they believe it won't happen to them.  The statistics are frightening before the age of 70:

                                                                                                                            Males                  Females

Will be diagnosed with Cancer                                                                      22%                        19%
 
Will suffer from a critical illness                                                                     16%                        15%

Will have a heart attack                                                                                    11%                          5%

Will undergo bypass surgery                                                                            6%                           1%
 
Will suffer a stroke                                                                                              7%                           5%

Will die from something other than a critical illness                                    6%                           2%

This information was collected from a 2005/2006 General Reinsurance Life Australia report and is based on those who are currently aged 30.