When it comes to having enough insurance cover in place, there should be no ‘it can’t happen to me’ attitude.
That’s because accidents and illnesses do not discriminate, so whether you’re male or female, single or married, it’s equally as important to have adequate insurance protection in place to protect you from unforeseen events.
As logical as all that sounds, there are still many women who are very underinsured when it comes to cover for their life or a critical illness.
Getting total cover is important
While many women may take the time to shop around for health, car or home and contents insurance, important protection such as life insurance or critical illness covers are often not considered or put on the back burner.
What this means is that if they were to die suddenly, their family would receive no pay-out to cover things such as funeral expenses, outstanding debts, or to make up for the total loss of their income. In the case of a total and permanent disability, which prevented them from working, or a major critical illness, there would be no funds available to pay for long-term hospital or health care.
Without cover, some women won’t be able to afford a medical specialist if they are unwell and may have to wait for treatment.
Are you single?
The Australian Bureau of Statistics has calculated that a fifth of Australia’s population now live alone. Many are single women who have large debts and mortgages.
Getting divorced, becoming widowed, or looking after adult children is getting more common for many Australian women. But many women fail to protect themselves for unforeseen illnesses if no-one is around to take care of them.
Those women who do think of life insurance usually insure their husband or partner before themselves. While this is important, more women are recognising that if they are unwell they may need money for a carer, a housekeeper, or just some money to maintain a reasonable living standard. Being unwell can be tough for your family. It can be even worse for women with children or who are on their own.
A sobering health check
Becoming critically ill is not rare. One in four women will be diagnosed with cancer of some sort in Australia, according to the Australian Bureau of Statistics.
By taking out life insurance, women can insure themselves for a fixed monthly income or lump sum payment if they become critically ill.
The amount of cover needed depends on various factors, such as age, income and debt levels.
Critical illness life insurance can pay a lump sum amount or a fixed monthly amount if a specified critical illness is suffered.
Increased awareness about cancer, screening programs and early detection means that cancer is being increasingly diagnosed in women at an earlier stage so can be more effectively treated. These types of early abnormalities are known as 'pre-invasive cancers'.
If left untreated, there is an increased risk that a mass of abnormal cells or tumour is formed and spreads to different parts of the body. These are known as malignant tumours, commonly referred to as cancer or invasive cancer, and can really bring home the potential need for life insurance for critical illness given the cost of treatment.
Your financial planner can help you find the right types of cover for your needs and to set your cover at the most appropriate level.
Come and talk with Leenane Templeton Chartered Accountants & Financial planners call 02 4926 230
Source: MLC / AVIVA – JUNE 2010
The information in this article reflects existing legislation, proposed legislation, rulings etc as at the date of issue. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended to be comprehensive or a substitute for professional advice on specific circumstances.The information given in this article is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.