Life gap more prevalent among women
A large part of the life underinsurance problem stems from working women who undervalue their financial contribution to the family, according to a report by financial planners the Sherlock Group.
Their survey finds women buy 50% less life insurance through their superannuation than men.
MD Bruce Sherlock says most female members of corporate superannuation schemes choose to be underinsured, selecting an average of just two times their annual salary while men choose three times their salary.
“Both levels of cover highlight the chronic underinsurance crisis in Australia,” Mr Sherlock said.
“In my view it is sensible for all workers to have between six and 10 times their annual income in life insurance covering death, disability and income protection.”
The Investment and Financial Services Association’s underinsurance campaign Lifewise shows 69% of life insurance claims are made by men and just 31% by women.
Their survey finds women buy 50% less life insurance through their superannuation than men.
MD Bruce Sherlock says most female members of corporate superannuation schemes choose to be underinsured, selecting an average of just two times their annual salary while men choose three times their salary.
“Both levels of cover highlight the chronic underinsurance crisis in Australia,” Mr Sherlock said.
“In my view it is sensible for all workers to have between six and 10 times their annual income in life insurance covering death, disability and income protection.”
The Investment and Financial Services Association’s underinsurance campaign Lifewise shows 69% of life insurance claims are made by men and just 31% by women.