The general Australian attitude of “she’ll be right” is very applicable to how Australians structure their personal insurance.
- 83% of Australians say they have insurance for their car (i).
- Only 31% insure their ability to earn an income with income protection insurance. (ii)
(i) AAMI Fact Sheet, Shopping for Car Insurance, September 2008
(ii) TNS/IFSA Investigating Income Protection Insurance in Australia July 2006
Insurance can help protect the things we value most. If you think you need insurance, or even if you already have some policies, it makes sense to have a strong understanding of it so it works for you.
If you consider the difficult lifestyle and financial choices families have to make when there is unexpected injury, life threatening illness and permanent disability, insurance will ease the financial burden compared to the cost. Most people over estimate the cost of personal insurance. With advice, there are many ways to manage the cost of appropriate cover that provides a good balance between managing the day to day budget and having protection for the unexpected.