There's a few misconceptions about life insurance - like 'insurers don't pay claims', or 'insurance is too expensive'. Some people even think 'insurance isn't for me - I don't need it!'
In fact, the opposite to each of these statements is true!
Let's debunk those myths and get the facts. If you're making decisions about protecting your family, you'll want to base your future on fact - not fiction.
Myth 1 - Life insurance companies don't pay claims!
Myth 2 - Life insurance is too expensive
Myth 3 - I'm young and healthy - so insurance isn't for me
Myth 4 - Thanks, but I've got enough life insurance cover in my super fund
Myth 5 - I'm covered by my private health insurance
Myth 6 - The government will look after me if I get sick
At Asteron Life, we pride ourselves on delivering on the promise we make to you when you take out a policy. In 2016, we paid more than $379 million in total claims to around 3,300 customers Australia-wide.*
According to the statistics collected by ASIC in its industry-wide review of claims handling in the life insurance industry, the majority of claims (approximately 90%) were paid in the first instance. Data from the Australian Regulation Authority (APRA), also show that, for the year ending 30 June 2016, at least $8.2 billion in net policy payments were made by life insurers.1
1Report 498: Life Insurance claims: An industry review, Australian Securities & Investments, Commission, October 2016
For most Australians insurance is very affordable! For less than the price of a cup of coffee a day, you can get a substantial amount of cover to protect your family's lifestyle. And, of course, the benefits of having life insurance can far outweigh the costs!
For just $1 a day you could get a substantial amount of Asteron Life Complete Life Cover.
|Age||Amount of cover for men||Amount of cover for women|
Assumptions: non-smoker, stepped premium, paid annually.
Life insurance can help people of all ages, and from all walks of life - it's not just for parents with kids and a mortgage.
Even if you're young, single and healthy today, insurance is important to help you protect your lifestyle, your independence and cover your debts - in the event that you need to.
Insurance policies like Income Protection or Trauma can help you cover the bills, pay your rent or mortgage, cover medical expenses and continue to fund your lifestyle if you can't work because you get sick or injured.
According to Rice Warner’s Underinsurance in Australia 2015 report, the median default cover of superannuation meets only about half of the basic death cover needs for households with no children and a much lower proportion for families with children (less than 25% for families with one child).1
Insurance through super may not provide cover for certain insurance types - like Income Protection or Trauma cover.
You should contact your super fund, or check your annual statement, to see what level - and types - of cover you already have. Then speak to a financial adviser about whether this is right for your needs.
Private health insurance provides valuable protection against the medical expenses associated with sickness and injury. But this is where it starts and stops: it's for medical expenses only. Income Protection, Total and Permanent Disability Cover and Trauma Cover can help cover your bills, debts or replace your lost income if you have to take an extended period off work due to illness or injury.
Private health insurance also may not cover the total cost of your treatment, or rehabilitation - potentially leaving you with a 'gap' that needs to be paid out of your own pocket.
To ensure you have no insurance gaps, a complete protection plan should encompass both private health insurance and life insurance.
The Government, through Centrelink, provides financial assistance for people who suffer a serious disability.
But the Disability Support Pension doesn't go far and there are rules around who is eligible for it.
From 20 September 2017 the Disability Support Pension for a single over age 21, or under 21 with children, is $894.40 per fortnight.2
At $23,254 per annum, that's just over a quarter of the average full-time income of $83,637.3 This could leave you with a funding gap when it comes to covering the bills, your rent or mortgage, medical expenses and your lifestyle.
Maximum rate of Disability Support Pension
|Pension rates per fortnight||Single||Couple (each)||Couple (combined)||Couple (each),
separated due to ill health
|Maximum basic rate||$814.00||$613.60||$1,227.20||$814.00|
|Maximum Pension Supplement||$66.30||$50.00||$100.00||$66.30|
For more information about the Disability Support Pension visit www.humanservices.gov.au
2 Payment rates appear as a guide only and are effective from 20 September 2017 and include the maximum Pension Supplement and Energy Supplement - https://www.humanservices.gov.au/individuals/enablers/payment-rates-disability-support-pension
3 Average Weekly Earnings, Australia May 2017, ABS, Catalogue 6302.0 www.abs.gov.au
The information provided is general advice only and does not constitute financial advice and does not take into account a person’s objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of this information having regard to your personal objectives, financial situation or needs.
Asteron Life™ is committed to providing customers with long term financial security. We provide life insurance products including Income Protection Covers, Trauma Cover, Total & Permanent Disablement (TPD) Cover, Life Cover and Business Expenses Cover. To obtain a copy of our privacy statement, please contact us on 1800 221 727 or visit the following website www.asteronlife.com.au/privacy to view or download the policy.
Suncorp supports and adheres to the Life Insurance Code of Practice (Code). The Code has been developed voluntarily by the Life Insurance industry through the Financial Services Council to promote high standards of service to consumers, provide a benchmark of consistency within the industry, and establish a framework for professional behaviour and responsibilities. Download the Code here. For more information contact the Financial Services Council on (02) 9299 3022 (local call cost), email firstname.lastname@example.org or visit www.fsc.org.au
* © Suncorp Life & Superannuation Ltd ABN 87 073 979 530 (SLSL). Registered Office, Level 28, 266 George Street, Brisbane QLD 4000.