What you need to know

Life Insurance

Adequate cover for an individual in a family situation was usually between 10 and 13 times the person’s annual income.

Only four per cent of Australian parents have enough life insurance cover to sustain their family’s lifestyle.

60 per cent - or 5.4 million families - are unable to see their loved ones through even the first year after their death.

"The majority of people surveyed understood life insurance was beneficial and knew it aimed to protect their family in the event of their death, but many thought only in terms of expenses such as funeral costs."

- IFSA Rice Walker, 2005

In 2002, 23% of male deaths were in people aged 25-64

- Australian Institute of Health and Welfare, Australia’s Health 2002

Every day almost 7 women die of breast cancer

- The Garvan Institute of Medical Research 2002

In 1999 over 2,000 people were killed in motor vehicle accidents in Australia

- Causes of Death, 1999, Australian Bureau of Statistics, 2000

In Australia 1 woman dies every 10 hours from cervical cancer

- Cancer In Australia 1998, Australian Institute of Health and Welfare

The probability of at least one partner in a 3 person partnership dying before age 65 is currently 37% for men and 23% for women (assuming all partners are aged 35)

- Mortality Australian Life Table 2004-05

Breast Cancer is the most common and single largest killer of women aged 30-60 in Australia

- Australian Institute of Health and Welfare, Cancer in Australia 2006

Critical Illness

More than three in four Australians will be diagnosed with a serious illness in their working life

- ING Australia’s Attitudes Towards Life Insurance, December 2008

Males have a 2 in 5 chance of suffering a critical illness between age 30 and 64
Females have a 1 in 4 chance of suffering a critical illness between age 30 and 64

- General Cologne Re, 2001: (this is general population data based on being 30 now)

One third of women and a quarter of all men will suffer cancer at some stage in their lifetime – over half of whom will live for longer than five years after diagnosis

- Cancer Council: Cancer in Australia: an overview, 2008 Australian Institute of Health and Welfare (published December 2008)

On a typical day in Australia 290 people will be diagnosed with cancer.
Every year Australians will suffer 53,000 new and recurring strokes – that’s one every 10 minutes!

- Australian Institute of Health and Welfare, Cancer in Australia 2007

Each year approximately 350,000 new cancer cases are diagnosed.
1 in 3 men and 1 in 4 women are expected to be directly affected by cancer in the first 75 years of life.
1 in 11 women is likely to develop breast cancer.

- Australian Institute of Health and Welfare, Cancer in Australia 2006

For a 40 year old, the risk of having a coronary heart disease at some time in their future life is 1 in 2 for Men and 1 in 3 for Women.

- Australian Institute of Health and Welfare, Heart, stroke and vascular diseases Australian facts 2001

25% of stroke victims are under age 65.

- Australian Institute of Health and Welfare & Brain Foundation of Victoria, 2001

On a typical day in Australia 35 people between the ages of 35 and 69 will survive a heart attack.

- Heart Foundation of Australia, "Heart, Stroke and Vascular Diseases" 1999

Males and females aged between 30 to 64 who suffer a critical condition have between 82% to 95% chance of survival.

- Fabrizio & Gratton 1994 "Pricing Dread Disease Report"

One in every 4 women is likely to suffer some form of cancer during their lifetime.
One in every 11 women is likely to develop breast cancer
Each year approximately 350,000 new cancer cases are diagnosed

- Australian Institute of Health and Welfare, Cancer in Australia 1998

Income Protection

83% of people insure their car but only 31% insure their most important asset - their income

Every working Australian has a 1 in 3 chance of becoming disabled for more than 3 months before turning age 65.

- Institute of Actuaries of Australia (2000). Interim Report of the Disability Committee. IAAust:Sydney

More than 60% of Australians will be disabled for more than one month during their working life.

More than 15% will be disabled for more than 3 three months during their working life.

1 in 6 men and 1 in 4 women are expected to suffer a disability from the age of 35 to 65 that causes a loss of six months from work.

Institute of Actuaries Table IAD 1989-93 and ALT 90-92

General

Reasons for not having life insurance:

• 33% because they do not understand how life insurance works
• 49% because they believe it is a waste of money
• 57% because they don’t think they need it
• 39% because they do not want to think about death or serious injury
• 52% because they feel sufficiently covered by the life insurance in their compulsory super
• 40% of respondents without any life insurance said they would be likely to get life insurance if they or someone they knew became very ill, disabled, or had a life threatening experience

- CommInsure Life Insurance Study 2004

The average levels of death cover in superannuation represent only 20% of average needs
60% of Australians don’t have enough life insurance to look after their dependants for more than one year if they were to die
Only 4% of Australians have life insurance more than 10 times their earnings
Only 10% of Australians have cover between 6 and 10 times their earnings
Just 26% of Australians have cover between one and five times their earnings

- IFSA, Corporate and Financial Services Regulation Review, January 2007

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