After spending so much money on something like a car, it makes sense to protect it with insurance.
But the problem for many Australian households is that their vehicles are better protected than the people who drive them.
When you look at how much life insurance actually costs, you’ll see it stacks up extremely well against car insurance – particularly when you consider the potential benefits.
The table below shows the premiums for a 35 year old accounts clerk (non-smoker) who earns $60,000 p.a. and takes out:
- Life Cover – $1 million sum insured
- Total and Permanent Disability (TPD) Cover – $1 million sum insured
- Income Secure Cover – $3,750 monthly benefit (payable to age 65). If this cover was required for example at age 35 – this would protect $2.7 million of income.
Source: ING Life
At $159.34 per month for a female, and $137.25 for a male, both customers are paying less for life insurance than they would for comprehensive insurance on a new $60,000 family wagon.
What’s more, Income Secure premiums are generally tax-deductible, which helps make life insurance even more affordable.
For families, the only way to stay truly covered is to maintain insurance on all of your most valuable assets – including your home, your car, and yourself.
If it’s time for a review, make an appointment with your financial adviser or call us on 133 667. One day it could make all the difference.
NOTE: This article is adapted from information supplied by ING.