Australian Life Insurers Pay Over $3.5 Billion In Claims

Life insurance, like any other type of insurance, is about managing financial risk. When the unexpected happens and a life insurance claim eventuates, many Australians have received benefit payments. Over $3.5 billion worth of claims were paid out by life insurers in 2010 alone(1).

Life insurance is an important consideration for those with loved ones who rely on them for financial support, as one in five Australian families will be expected to be financially impacted by the death or serious illness or injury of a parent(2) at some point in their life. Yet, 64% of Australians were estimated to be underinsured for life insurance in 2007, by an average of $112,000 per family(3).

In 2005 it was estimated that, full time working couples with young children needed life insurance with a benefit around 10-13 times their taxable earnings, while families with older children were estimated to need a benefit 6-9 times their taxable earnings(4).

When taking out life insurance, it is important to calculate your family's needs to secure their financial future. Your family will then be in a position to receive their portion of over $15 million in paid claims on the average day.

Life insurance claims are paid upon death or diagnosis of a terminal illness, but additional cover options may also be included, such as insurance for serious illness or total and permanent disability. This way, you can also benefit from financial assistance to help with medical bills while alive.

The best way to choose life insurance is to compare your options before selecting the one that suits you. With Choosi, you can compare a range of brands and apply immediately over the phone.

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) APRA Half Yearly Life Insurance Bulletin June 2010.
(2) Lifewise/NATSEM Underinsurance Report 2010.
(3) AXA Protection Report 2007.
(4) Investment and Financial Services Association (IFSA) Cost of Underinsurance Project 2005.