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Over half of Australian women and their partners don't have life insurance
19 November 2012
The survey of 1150 Australian women also uncovered that over half of these women admit their partners don’t have life insurance either – leaving Australian families at risk financially.
Larke Riemer, Director Women’s Markets Westpac, said the results show that women are not thinking ahead and need to prepare to ensure the financial security of their families.
“The reality is that this is a topic none of us want to think about, let alone actively plan for but I have seen too many terribly sad situations which could have been prevented by being proactive with planning.
“With 95% of Australian families underinsured – it has been a real issue in the last few years and one that women should address. It is an unfortunate reality that we need to consider what might happen to the financial health of our families if our partners incurred an injury which prevented them from working or the unthinkable, if they passed away.
“It is startling to see that 64.6% of Australian women’s partners have no life insurance. With women frequently taking time out of their careers for extended periods to have a family, it is essential to consider how your family would cope without the income of your partner.
“If women take proactive steps to make certain they have the right insurance in place for them and their families, it should actually lessen financial stresses. It is surprising that so many people insure their houses, contents and cars but not themselves”, she said.
While it is not surprising that Gen Y (aged 29 and below) respondents were more likely to think they can live without insurances (36.1%), Ms Riemer says it is always important to revise your broader financial plan, which should include insurance, every few years or with a significant life change such as becoming a parent.
“When big changes happen it is important to re-evaluate your insurance needs. Becoming a parent is one significant life change that should significantly alter your insurance plan. Life insurance offers protection and peace of mind for your family”, Ms Riemer said.
Westpac’s Top Insurance Tips
1.Assess your risk
•Be a realistic optimist and plan ahead
•Consider your age and stage in life
•Ask yourself, are you underinsured?
2.Revaluate your risk for different stages in life
•When you buy a house and take on a mortgage
•When you have children
•The risks associated with your job
•How is your general health/ how is your partners health
3.Ensure you take out a policy that best suits your individual needs. Seek professional advice.
•Six out of ten women (59.2%) do not have life insurance cover with 50.9% of them saying their partner doesn’t have it either.
•68% of women are not interested in taking out any form of life insurance.
•Just over half of women with life insurance (53.1%) personally have cover between $50,001 and $500,000
•27.7% of women think they could have more insurance but don’t feel they can afford it
•Just under seven in ten women (67.6%) find insurance matters complicated with 20.3% stating it is very complicated.
•Gen Y respondents (aged 29 and below) have a significantly higher propensity to find insurance matters complicated than the rest of Australians (74.6%)
•The main reason for not having life insurance is ‘financial matters’. In fact, 26.5% of those who currently don’t have a life insurance policy don’t have it because they can’t afford the premiums
•Nearly seven out of ten women who don’t have life insurance (68.0%) are not interested in taking out life insurance at all
•Gen Y respondents (aged 29 and below) have a significantly higher propensity to think they can live without insurances than the rest of Australians (36.1% vs. 25.7%)
Visit rubyconnection.com.au/events to find out what workshops are being held in your closest capital city.
All statistics in this document are sourced from: Westpac Women: Insurance Survey, June 2012, powered by Coredata – Result summary available on request.