What if in 10 years time there was even less insurance ?Hows the economy?
The AFA has published an Insurance Fact Sheet, set out below, drawn from a number of research sources, to emphasise its point:What if NO insurance was bought ?Because at the moment its all sold! But what if it wasnt purchased in the same amounts as now?The effects on the economy would be horrendous,and the people in Canbera beleive by banning an incentive to sell this solution is a bad thing?Who voted for them ?Rember this Mr Cooper and Mr Bowen in Years to come
when Lives are ruined for lack of adequate insurance we will know where to point the finger!
Just consider these stats.
Household Debt
• National average mortgage in Australia – $283,000 (i)
• Monthly repayments on average mortgage – $2,062 (ii)
• Average credit card debt – $3,244 (iii)
• Full-time earnings (seasonally adjusted wages) – $64,594 (iv)
Life Insurance Claims Made to Australian Families and Businesses (v)
• Total claims – $3.045 billion
• Term life insurance – $1.6 billion
• Income protection insurance – $697 million
• Trauma insurance – $334 million
• Total and permanent disability insurance – $370 million
Likelihood of Serious Illness (vi) [see also IP Adviser Tool to Engage Clinets]
• 50,000 Australians have heart attacks every year
• One third of women and a quarter of men will suffer cancer at some stage in their lifetime
• More than 42,000 people were expected to die from cancer in 2009
• Half of all men and a third of women will be diagnosed with cancer before the age of 85
The Under-insurance Gap (vii)
• Life insurance cover within super is on average only 20% of what is required according Rice Warner Actuaries
• Only 4% of Australian families with dependent children have adequate levels of insurance cover, meaning Australian families are critically underinsured by $1.37 trillion, according to research commissioned by IFSA in 2005
“We urge Canberra to take a long hard look at the statistics around life insurance and seriously consider the impact of introducing any measures that are likely to discourage Australians from taking out insurance that protects them against the financial impact of death and disaster,” said Dr Taggart.
(i) Australian Bureau of Statistics – owner-occupied at December 2009 (released February 2010)
(ii) Owner-occupied $283,000 mortgage @ 7.34% over 25 years
(iii) Reserve Bank of Australia – $3,243.92 at March 2010
(iv) Australian Bureau of Statistics – First Quarter 2010
(v) The risk store – industry stats 2008
(vi) Lifewise – www.lifewise.org.au
(vii) Lifewise – www.lifewise.org.au
IF THE BILLIONS OF DOLLORS THAT ARE NOW PAID IN CLAIMS WERE NOT THERE CONSIDER THE IMPACT ON THE ECONOMY?
HAS CANBERA?
