Ahead of the expected $800 million-plus to be wagered on Melbourne Cup Day, Australians are being warned about trusting in luck rather than good management to secure their financial futures.
When it comes to financial protection, Aussies are seriously mistaking the odds when it comes to calculating the need and value of having adequate financial protection in place should one’s income stop.
TAL Group CEO Jim Minto said: “It is part of human nature to trust in luck or a big windfall such as winning the ‘big one’ at the Melbourne Cup or the lottery, and for most people, it’s just good fun. But statistically we know this is highly unlikely to happen, and we also know a high proportion of people will suffer a significant health event but rate financial protection very low as a priority.
“About 70% of Australians gamble each year[1] but the chance of winning a major lottery prize is about 1 in 45 million[2]. In fact, the confronting news is if you buy the ticket the day before the draw, the University of NSW says you have a greater chance of dying before the lottery is drawn than winning it[3].
Despite the odds, the average household spends $15 a week on lottery tickets. Meanwhile, research repeatedly shows the overwhelming majority of Australians do not have adequate protection in place.
The unfortunate facts are six in 10 Australians6 will be disabled for more than one month during their working life. One in four will be disabled for more than three months.
“No-one would argue against trying your luck buying a lottery ticket or having a flutter on the Melbourne Cup. It’s a great Australian pastime. But when it comes to financial protection, it’s not enough to rely on luck,” Mr Minto said.
“The numbers clearly show your best chances of maintaining financial security in the face of a whole range of adverse events is to choose the right kind of life insurance protection. In other words: make your own luck.”
An individual or family may make a conscious decision about what insurances to include or exclude, especially when done with the facts and good advice. However, TAL research[4] shows only 37% of Australians believe they have one or more forms of life insurance in place.
“If you don’t know whether you’re protected or not, you’re taking a huge gamble,” Mr Minto concluded.
Click here to download the full press release, including the table.
