With the industry paying out more than $6 million every day in claims, more could certainly be done to explain the improvements the industry has made and the value the industry gives back. Having identified the issue in 2005, superannuation funds, insurers and planners have already done much to improve the situation for Australians. But a coordinated effort is required if we’re going to shift Australians’ attitudes towards the life risks they face and the various ways they can protect themselves.
Through the Lifewise website, Australians will be able to access general information that will help them feel confident approaching life insurance decisions in the same way they do other insurance matters. The website will have user-friendly tools, such as a basic insurance needs calculator, Q&A, budget planner, testimonials and case studies. It is hoped that this information will enable them to feel comfortable assessing their risks and thinking about how to manage them. Lifewise is being coordinated by IFSA and has first-year funding via special contributions made by IFSA’s life insurance and reinsurance members.
Lifewise will be supported and used by many in the industry community – insurers, superannuation funds and advisers. Lifewise will also be developing partnerships in the broader community via the media and community groups. To be officially launched at a luncheon in Sydney on May 1, 2009, the campaign will start with a website and “how much is enough” calculator to educate consumers about the risks they face, how they can protect themselves and how much protection is likely to be required, along with estimated costs.
Financial planners are encouraged to use the site and consumer tools to educate clients about how life insurance works and the benefits. Through Lifewise we hope that all Australians will get wise on life insurance and make sure they have the right level of insurance cover. Not only will this give them peace of mind now, it will secure their long-term financial wellbeing, no matter what life throws their way.
The life insurance industry launches Lifewise on May 1, 2009, to encourage Australians to make conscious and informed decisions about their life insurance needs. To attend the launch, register at the IFSA website: www.ifsa.com.au
Emma Grainge is IFSA’s senior policy manager.
