Prepare for the Unexpected.
Australians tend to be optimists, and that optimism can potentially lead to a large percentage of us being underinsured. Concerningly, more than a third of survey respondents to a OnePath Life research project did not have any plan in place if the worst should happen. A silver-lining of the pandemic has been a trend that emerged in the early months of COVID, as individuals in Australia started actively reviewing and renegotiating their life insurance. COVID has seemingly become a catalyst for conversations about the fragility of life and how to prepare for it. And it's an important, though uncomfortable, conversation to be had.
The loss of a family member is emotionally devastating. But it shouldn’t also be financially devastating, and all too often it is. Studies have found that the impact of parental death on children is worsened when financial pressure is added to the situation. For example;
- When there is only one parent working longer hours to bring in enough money to pay the bills, many kids drop out of school
- Families may be forced to relocate to more affordable areas and schools, moving away from social circles and causing great disruptions to their lifestyle
- Without a plan or financial security in place, the sick get sicker and can’t recuperate due to the financial stress
You might be thinking that you have life insurance covered through your superfund. In reality, many people may have some cover but that doesn’t mean the policy fine print is good, or that they have enough cover.
By having the conversation with your financial adviser about life insurance, you can become financially prepared for the unexpected and create greater security for the future of you and your family.