Life insurance myths busted
Take a look at some of the common reasons people don’t take out life insurance and the counter reasons for why you may want to consider it.
“I don’t need it” No one wants to think of the worst. We hope that you won’t need it! This may be true, or it may be partially true. Your Pinnacle adviser can make sure that you have the cover you need to help protect you and your family.
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“I’ve got insurance cover elsewhere” While it’s fantastic if you’ve got insurance cover elsewhere, do you know:
You need to ensure that:
Will your cover be underwritten at claim time or at time of application? Will the proceeds go to the correct person? These are all questions your Pinnacle adviser can help address for you. |
Did you know? In 2020, Rice Warner actuaries¹ found that:
¹ Underinsurance in Australia 2020 report.
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“I’ve got other priorities”
Having established that you have a need You absolutely need to be saving for your retirement. You also may need to pay for your children’s education. But if your income stops, all of these goals could become unachievable. Insurance can provide a sum of money to replace your lost income and help meet these and other goals and needs. |
“My Insurance is no longer relevant to me”
This may be the case! But it’s important to review your insurance with your financial adviser to confirm whether it still meets your needs. Your circumstances may have changed and your insurance needs may have changed with them. For example:
These are all questions that a financial adviser will ask you when undertaking a review of your insurance needs. |
“Can’t I rely on social security?” The Disability Support Pension (DSP) is currently less than 30% of the male average wage, or $25,677.602 per annum for a single person. According to the Australian Bureau of Statistics (ABS), only about 15% of current applicants are granted the DSP, with the vast majority of applications being rejected.3 So, the social security safety net may not be there if you need it.
² Figure current at 20 March 2022 and includes the Pension Supplement and Energy Supplement. ³ ABC News. ‘Disability support pension: Successful claims plummeting after Government rule change’. June 2016 |
Seek advice
A Pinnacle financial adviser can help ensure you have the right insurances in place to protect your family’s lifestyle. The first step is having the conversation.
Your Pinnacle adviser can provide you with recommendations on what types and amounts of insurance cover you need to help make sure your family’s lifestyle is protected.
Source: Actuate Alliance Services Pty Ltd (member of the IOOF group of companies)