Myth Busters

MYTH: I’m too young for insurance!

You’re never too young – now is a great time to lock in your income until retirement against accident or illness. This will ensure that in the unfortunate event of becoming critically ill or disabled you will have resources to ensure you get the care you need and still be financially independent.

The greatest thing about being young and healthy is that cover is the most affordable, and in reality, with everything in front of you – you stand with the most to lose!

MYTH: Insurance is expensive

Insurance makes good economic sense! By investing a relatively small amount, you can instantly create a pool of contingency capital and income. Compare this to exhausting your savings, relying on government benefits or depending on friends and family – what would you prefer?

With Teachers Insurance Services, 30 year old male non-smoking teacher can buy:

·         $100,000 Life Insurance for $10.59 a month

·         Add $100,000 of Total Disability cover for an extra $2.65 a month*

·         Add $100,000 of Critical Illness Insurance for an extra $11.72 per month

 

MYTH: Insurance through my superannuation fund is sufficient

Rice Walker Actuaries and IFSA research shows:

As you take major financial steps, like buying a house or having children, the need for Life Insurance increases. It is important you do not rely on superannuation proceeds alone:

·         The average superannuation fund member holds life cover representing only 20% of their needs

·         Families with dependent children:

·         60% do not have enough life cover to support their family for 1 year

·         86% do not have enough life cover to support their family for 5 years

As you take major financial steps, like buying a house or having children, the need for life insurance increases. It is important you do not rely on superannuation proceeds alone.

(Sources: Rice Warner Actuaries 2007 & IFSA Research – Aug 2005)