LifeAWARE Australia is raising awareness about underinsurance and lack of personal insurance education in Australia.
The Australian Life Insurance Movement was inspired by a similar movement over at Good Financial Cents in the United States as part of Life Insurance Awareness Month. Life Insurance Awareness Month occurs every year in September and is organised by LifeHappens a Not for Profit organisation dedicated to helping consumers make smart insurance decisions.
The Australian movement was created to raise awareness about the severe problem of underinsurance and general lack of education about personal insurance in Australia. In order to help spread the word, a community of Australian digital parents are teaming up with Life Insurance Finder to write about Life Insurance Awareness (and the lack thereof) in Australia throughout the month of September 2012.
Australians are severely underinsured
Did you know that:
- One in two industry fund members are underinsured by $100,000 or more.
- More than 50% of respondents are under-insured for death cover by $100,000.
- For Total and Permanent Disability cover, 74% are underinsured by $100,000 or more.
- For Income Protection cover, 45% are underinsured by $1000 or more a month.
The only exceptions were those who are under 32 with no dependants; this group was found to be over-insured in many cases.
Source: 2008 joint survey conducted by the Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum
Why do Australian’s need the Life Awareness Movement?
Nearly 50% of Australian's have difficulty in understanding insurance terms and gathering unbiased information and one third of super fund members are unaware that their fund offers insurance cover. This means to say that many Australian's really have no idea just how much insurance cover they actually need.
Actual cover vs cover required (based on IFF/AIST formulae)
- Average death cover: $189,000 Vs Average cover required: $431,000
- Average level of TPD: $162,000 Vs Average cover required: $437,000
- Average level of IP $2,700 a month Vs average level required: $3750
Why support the Life Aware Australia Movement?
- To help others avoid potential financial burdens at times of immense stress
- To help others gain awareness of the underinsurance problems in Australia
- To ensure your family and your loved ones are protected
- Determine if you need life insurance or Income protection insurance at all. Read the free Beginners Guide.
- Check out our Life Insurance Calculator to work out exactly how much cover you really need.
- Compare life insurance plans and determine which plan is best for your needs.
- Feel free to ask questions of our insurance experts.
Statistics: 2008 joint survey conducted by the Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum.