Life underinsurance hurts families, says IFSA
Australian families are receiving an average life insurance payout of just $91,000 on the death of a partner as underinsurance booms.
Claims figures released by the Investment and Financial Services Association (IFSA) show $2.3 billion in claims were paid last year on nearly 35,000 policies.
Deputy CEO John O’Shaughnessy says the average size of claims paid is “worryingly low” and shows Australians continue to be underinsured.
“More than 13,000 families received an average payout of $91,000 on the death of a partner, usually the primary breadwinner,” he said. “Given the average family with young children has debts totalling $167,000, these levels of cover will not protect the majority of Australians from financial difficulty.”
The figures were released last week to coincide with the launch of Lifewise, an industry-funded awareness campaign tackling underinsurance.
The campaign will last three to five years. It features a straight-talking website with an insurance calculator so people can work out how much cover they need.
Claims figures released by the Investment and Financial Services Association (IFSA) show $2.3 billion in claims were paid last year on nearly 35,000 policies.
Deputy CEO John O’Shaughnessy says the average size of claims paid is “worryingly low” and shows Australians continue to be underinsured.
“More than 13,000 families received an average payout of $91,000 on the death of a partner, usually the primary breadwinner,” he said. “Given the average family with young children has debts totalling $167,000, these levels of cover will not protect the majority of Australians from financial difficulty.”
The figures were released last week to coincide with the launch of Lifewise, an industry-funded awareness campaign tackling underinsurance.
The campaign will last three to five years. It features a straight-talking website with an insurance calculator so people can work out how much cover they need.