Life Insurance: Australian Families Seriously Underinsured

A report released in 2007 revealed that an overwhelming 64% of Australians are underinsured when it comes to life insurance, by an average of $112,000 per family (1).

In many cases, families rely on the life insurance policy that comes as part of their superannuation plan, in many cases it can be inadequate.

How much life insurance does the average family need? The exact amount will vary for each family according to their individual needs, but a study released in 2005 showed that full time working couples in their mid-thirties with young children is estimated to need life insurance with a benefit at least 10-13 times their taxable earnings. For full time workers in their mid-forties with older children, this figure is adjusted to 6-9 times their taxable earnings (2).

Policy holders can choose both the benefit amount and the beneficiaries of their life insurance, meaning you can ensure that your family has a way of paying off the mortgage or other debts, covering children's education costs, and generally being able to maintain the lifestyle you want for them, even after you're gone.

For parents with dependent children, life insurance is clearly not only a practical choice, it's a responsible one too.

To organise your life insurance to help meet your family's needs, contact Choosi on 1300 884 384 or visit choosi.com.au. With Choosi's free comparison service, you can compare a range of life insurance brands and apply immediately over the phone. You won't need to take any medical exams and you could be covered within minutes.

General Advice Disclaimer: Choosi is owned by Hollard Financial Services Pty Ltd (ABN 53 128 692 884,. This Information is general in nature and does not take into account your personal objectives, financial situation or needs.

(1) AXA Protection Report 2007.
(2) Investment and Financial Services Association (IFSA) Cost of Underinsurance Project 2005.