LIFE RISK PROTECTION PRODUCTS
Underinsurance, who's fault is it anyway?
You have probably read in the press recently about the fact that Australians in general do not carry enough personal insurance cover. The assertion applies to Life, Trauma and Income Protection insurances and is an assertion made despite a large proportion of the workforce holding some cover in their superannuation fund.
It is clearly recognised that people avoid the thought of their death or disability, it is not a favourite topic of discussion, or thought process. Usually activity around the purchase of personal insurance comes from a trigger event. This is usually one of 3 things, first a public identity or a person close to you dies or becomes traumatised and this makes you take stock of your own situation. The second most common trigger seems to be when a person takes on extra debt, often this causes a revaluation of their insurance cover. The third trigger is when an adviser asks you to consider your position carefully as part of a professional service.
Over the years there have been a number of quick solution rules of thumb as to how much life insurance is enough as a minimum. These range from “3 times your income plus all debts” to “10 times your income”. As a rough guide they are not too bad, but they are pretty rough.
A professional evaluation might come to a similar conclusion but the answer will probably involve a variety of inter-linked insurances to ensure that there is nothing that will fall through the cracks. We are not locked in to any single provider of product, we check the market before we make any recommendations to you.
At Nixon Financial Services we understand people and their needs, we have all personally experienced life as family and business people to varying degrees as shown in our individual profiles on another page of the web-site. We also know what the impact is to a family when there is no insurance compared to situations where there has been adequate cover.
Come and talk to us about your “underinsurance problem”.