Risks we all face

Most people recognise the need for insurance to cover their home, home contents and car. These are seen as valuable assets, and we all know somebody who has been burgled or involved in a car crash. Insurance cover ensures that valuable assets can be replaced with minimal disruption, so that life can return to normal.

The capacity to earn an income is your greatest asset. It is the cornerstone of your lifestyle, as it enables you to feed your family, pay your home loan repayments and put petrol in your car. The value of this income is much more than simply your annual salary for one year:

E.g. a 35 year old on an annual salary of $65,000 will earn over $4.3 million by age 65. (Assumes a salary increase of 5% p.a. including inflation, calculated using ING's Income Calculator)

Click on the heading below that best describes your current situation, and read about the risks to your family and lifestyle if you are underinsured.

The key focus of this stage of life is financial development. Earning a good income and focusing your energies on your career are generally high priorities for most young Australians. Your aim is probably to provide for today and otherwise to enjoy life! It is easy to think that you will never get sick and never be badly injured (like in a car crash). Plus, you don’t have any dependants to worry about providing for should anything go wrong. But actually there is someone - You!

Your ability to earn an income is crucial for:

  • Saving up a deposit to buy your first home
  • Keeping up with your home loan repayments or rent
  • Paying all of your other bills
  • Keeping the car running and full of petrol
  • Enjoy an active social life
  • Planning that overseas trip
  • Saving up for the future

But just like everyone else in the world, you still face many risks to your current and future lifestyle that you should consider:

  • In 2002 an estimated 30,000 Australians sustained injuries requiring hospital treatment as a result of motor vehicle accidents [1]
  • More than 60% of Australians will be disabled for more than one month during their working life and more than 25% will be disabled for more than three months [2]
  • Almost 24% of new breast cancer cases diagnosed in 2001 were women aged 20 – 49 [3]

While it might seem unlikely, it is a reality of life that accidents and illnesses can strike at any time. You might be able to get by without an income for up to a month, but how about 6 months? 1 year? 2 years? Or what if you were permanently disabled? The financial consequences are potentially devastating.

The benefit of having a personal insurance plan is that through making relatively small payments, you can instantly put in place a safety net for your future needs and lifestyle. This can help you avoid having to:

  • Sell your home
  • Spend your savings
  • Survive on a very small level of income from the Government
  • Rely on your relatives for long-term financial support
1. Land Transport Safety Authority 2002
2. Australian Disability Table IAD89-93 Class 1995
3. National Breast Cancer Centre 2008

This is an exciting planning stage, and you are working as a team towards goals and objectives, including building a lifestyle and a financial future. You don’t plan to get sick, injured or to die unexpectedly. You still have most of your life ahead of you! But even though you are still relatively young and still expanding your financial responsibilities, the potential impacts of being unable to provide an alternate source of income should the worst occur can be quite devastating.

Your ability to earn an income is crucial for:

  • Saving up a deposit to buy your first home
  • Keeping up with your home loan repayments or rent
  • Paying all of your other bills
  • Keeping the car running and full of petrol
  • Enjoy an active social life
  • Planning that overseas trip
  • Planning for the costs associated with having children

So given how crucial your income is to managing your lifestyle and achieving your dreams for the future, it is worth considering:

  • Sufficient life insurance is generally accepted to be at least ten times a person’s annual salary
  • Australian workers have a 1-in-3 chance of becoming disabled through illness or injury for a period greater than 3 months prior to retirement age of 65 [1]
  • The most prevalent and single largest killer of woman between the ages 30 - 60 is Breast Cancer, taking the lives of almost 7 women each day. It is also the most likely form of cancer to affect women in their early ages [2]

While it might seem unlikely, it is a reality of life that accidents and illnesses can strike at any time. You don’t have any children depending on you yet, but as a couple you are responsible to provide for each other. You might be able to get by without an income for up to a month, but how about 6 months? 1 year? 2 years? Or what if you were permanently disabled? The financial consequences are potentially devastating.

The benefit of having a personal insurance plan is that through making relatively small payments, you can instantly put in place a safety net for your future needs and lifestyle. This can help you avoid having to:

  • Sell your home
  • Spend your savings
  • Survive on a very small level of income from the Government
  • Rely on your relatives for long-term financial support
  • Change your plans for the future of your family
1. Calculations based on data from the institute of Actuaries of Australia 2000. Interim report of the Disability Committee IA Aust: Sydney
2. The Garvan Institute of Medical Research 1997

Having children for the first time will change your financial priorities and responsibilities in a huge way. There is nothing stronger or more compelling than the natural instinct of a parent to protect their family. You want to be sure that that your family is secure in your care. You like to think that you will always be there for your family, and that you will always be able to work and provide a steady income. No one plans to get sick, injured or to die unexpectedly, and you probably have a tendency to think that it won’t ever happen to you. The potential impacts of being unable to provide an alternate source of income should the worst occur can be quite devastating.

Your ability to earn an income is crucial for:

  • Keeping up with your home loan repayments or rent
  • Upsizing your home to cater for more children
  • Paying all of your other bills
  • Keeping the car running and full of petrol
  • Providing educational opportunities for your children
  • Holidays and activities so that you can enjoy time together as a family
  • Growing your savings to ensure your kids have the good start in life they deserve

So given how crucial your income is to managing your lifestyle and providing for your family in the future, it is worth considering:

  • A worrying statistic is that six in ten people with dependants don’t have enough life insurance cover to look after their family for more than one year if they were to die [1]
  • In 2004 over 1,500 people were killed in motor vehicle accidents in Australia [2]
  • Three out of every four Australian families will experience cancer [3]
  • More than 50,000 Australians suffer heart attacks annually [4]
  • More than 60% of Australians will be disabled for more than one month during their working life and more than 25% will be disabled for more than three months [5]

While it might seem unlikely, it is a reality of life that accidents and illnesses can strike at any time. You might be able to care for your family without an income for up to a month, but how about 6 months? 1 year? 2 years? Or what if you were permanently disabled? The financial consequences are potentially devastating.

The benefit of having a personal insurance plan is that through making relatively small payments, you can instantly put in place a safety net for your future needs and lifestyle. This can help you avoid having to:

  • Sell your home
  • Spend your savings
  • Survive on a very small level of income from the Government
  • Rely on your relatives for long-term financial support
  • Change your plans for the future of your family
1. IFSA-Rice Walker Fast Facts: A nation exposed! Underinsurance key facts, August 2005
2. Year Book Australia 2006, www.abs.gov.au
3. Australian Institute of Health and Welfare, Australia’s Health 1998
4. Cardiovascular Health in Australia, Department of Health 1994
5. Australian Disability Table IAD89-93 Class 1995

Your family is maturing and your family responsibilities may now be starting to ease. As your household income starts to peak and child-rearing responsibilities start to ease, you can start to focus more on building financial security for the future and your retirement. No one plans to get sick, injured or to die unexpectedly, and you probably have a tendency to think that it won’t ever happen to you. The potential impacts of being unable to provide an alternate source of income should the worst occur can be quite devastating.

Your ability to earn an income is crucial for:

  • Keeping up with your home loan repayments or rent
  • Paying all of your other bills
  • Keeping the car running and full of petrol
  • More frequent overseas travel
  • Home improvements that you’ve been putting off for years
  • Replacing the family car
  • Buying an investment property or shares
  • University or TAFE education for your children

So given how crucial your income is to managing your lifestyle and providing for your family’s future and your retirement, it is worth considering:

  • In 2004 over 1,500 people were killed in motor vehicle accidents in Australia [1]
  • Injury is the leading cause of death among people who are under 45 years of age [2]
  • Three out of every four Australian families will experience cancer [3]
  • More than 50,000 Australians suffer heart attacks annually [4]

While it might seem unlikely, it is a reality of life that accidents and illnesses can strike at any time. You might be able to care for your family without an income for up to a month, but how about 6 months? 1 year? 2 years? Or what if you were permanently disabled? The financial consequences are potentially devastating.

The benefit of having a personal insurance plan is that through making relatively small payments, you can instantly put in place a safety net for your future needs and lifestyle. This can help you avoid having to:

  • Sell your home
  • Spend your savings
  • Survive on a very small level of income from the Government
  • Reduce your children’s educational opportunities
  • Drastically change your retirement plans
1. Year Book Australia 2006, www.abs.gov.au
2. "Injury Prevention Control", 2005, Australian Institute of Health and Welfare, www.aihw.gov.au
3. Australian Institute of Health and Welfare, Australia’s Health 1998
4. Cardiovascular Health in Australia, Department of Health 1994

As your financial pressures ease and your children embark on their own “young and single” stage of life, your personal insurance needs may have diminished. While it is still easy to dismiss the possibility of illness, injury or unexpected death with the attitude “it won’t happen to me,” the potential impacts of being unable to provide an alternate source of income should the worst occur can still be quite devastating.

Your ability to earn an income is crucial for:

  • Paying all of your household bills
  • Keeping the car running and full of petrol
  • More frequent travel opportunities
  • Home improvements that you’ve been putting off for years
  • Buying a holiday home
  • Building adequate savings for your retirement

So given how crucial your income is to managing your lifestyle and providing for your future retirement, it is worth considering:

  • In 2004 over 1,500 people were killed in motor vehicle accidents in Australia [1]
  • In 2002 an estimated 30,000 Australians sustained injuries requiring hospital treatment as a result of motor vehicle accidents [2]
  • One in three men and one in four women will suffer from cancer before the age of 75 [3]
  • The major cause of disability in Australian adults is stroke with over 40,000 recorded cases annually [4]
  • Over 4-in-10 victims of heart attack will die within a year and in excess of 50% of these deaths occur before the sufferer reaches a hospital [5]

While it might seem unlikely, it is a reality of life that accidents and illnesses can strike at any time. You might be able to survive without an income for up to a month, but how about 6 months? 1 year? 2 years? Or what if you were permanently disabled? The financial consequences are potentially devastating.

The benefit of having a personal insurance plan is that you can instantly put in place a safety net for your future needs and lifestyle. This can help to protect your wealth and avoid having to:

  • Sell your home
  • Spend your savings
  • Lose the assets that you spent a lifetime working to build for your retirement
  • Survive on a very small level of income from the Government
  • Depend on your children for financial support
  • Drastically change your retirement plans
1. Year Book Australia 2006, www.abs.gov.au
2. Land Transport Safety Authority 2002
3. "Cancer in Australia 2001" Cancer Series no.28, Australian Institute of Health and Welfare, www.aihw.gov.au
4. Australian Institute of Health and Welfare, Cancer in Australia 1998
5. National Heart Foundation Statistics, Australian Facts 2001 highlights