Australians & Life Insurance
Australians significantly overestimate the cost of life insurance premiums, which dissuades them from taking out a policy. This is a major contributor to the underinsurance problem we have in Australia.
Research commissioned by Lifebroker in February 2010 provided an interesting analysis of the attitudes and awareness in regards to life insurance in Australia.
The Lifebroker Life Insurance Research Report found that:
Men overestimate the annual premium of life insurance by 49% and women by 65%.
This is interesting when coupled with the fact 36 per cent of survey respondents stated the alleged ‘expense’ was the major factor in them not having life insurance products.
Something Australians’ might find surprising is the fact that life insurance premiums actually cost about the same as home and car insurance premiums and less than health insurance premiums, while at the same time providing higher payouts at claim time.
Harry: aged 24, wants $500,000 Life Insurance (We have provided premiums for 2 separate occupation types)
| Occupation | Office worker | Manual labourer |
| Company | MLC Protectionfirst | MLC Protectionfirst |
| Premium | $31 | $31 |
Harry: aged 24, wants Income Protection Insurance on a 30 day wait period, to age 65 benefit period.
| Occupation | Office worker | Manual labourer | ||
| Annual Salary | $50,000 | $80,000 | $50,000 | $80,000 |
| Company | AIA | AIA | AIA | AIA |
| Premium | $35 | $49 | $60 | $87 |
Sally: aged 24, wants $500,000 Life Insurance (We have provided premiums for 2 separate occupation types)
| Occupation | Office worker | Manual labourer |
| Company | Tower | Tower |
| Premium | $22 | $22 |
Sally: aged 24, wants Income Protection Insurance on a 30 day wait period, to age 65 benefit period.
| Occupation | Office worker | Manual labourer | ||
| Annual Salary | $50,000 | $80,000 | $50,000 | $80,000 |
| Company | AIA | AIA | AIA | OnePath |
| Premium | $49 | $71 | $86 | $127 |
Ron: aged 34, wants $500,000 Life Insurance (We have provided premiums for 2 separate occupation types)
| Occupation | Office worker | Manual labourer |
| Company | Tower | Tower |
| Premium | $29 | $29 |
Ron: aged 34, wants Income Protection Insurance on a 30 day wait period, to age 65 benefit period.
| Occupation | Office worker | Manual labourer | ||
| Annual Salary | $50,000 | $80,000 | $50,000 | $80,000 |
| Company | AIA | AIA | Macquarie | Macquarie |
| Premium | $44 | $63 | $76 | $112 |
Trudy: aged 34, wants $500,000 Life Insurance (We have provided premiums for 2 separate occupation types)
| Occupation | Office worker | Manual labourer |
| Company | AXA | AXA |
| Premium | $23 | $23 |
Trudy: aged 34, wants Income Protection Insurance on a 30 day wait period, to age 65 benefit period.
| Occupation | Office worker | Manual labourer | ||
| Annual Salary | $50,000 | $80,000 | $50,000 | $80,000 |
| Company | AIA | AIA | AIA | OnePath |
| Premium: | $63 | $92 | $112 | $161 |
It is time for Australians to realise that life insurance is not only a necessity, but also affordable.
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