Rice Warner has released its much anticipated Underinsurance in Australia Report.
This report contains our estimate of the amount of underinsurance in Australia for the main life insurance coverages, namely life, total and permanent disability (TPD) and income protection benefits, as at 30 June 2014. Our report evaluates the estimated amount of insurance cover needed by varying consumer demographics and compares this with the amount of insurance actually held in each segment. The difference between these amounts is the Life underinsurance gap.
Did you know ?
– Headline median underinsurance stands at 1.811 trillion dollars, covering just 60% of basic life cover needs.
– For income replacement level of life cover, this gap increases to 4.524 trillion, and covers just 38% of needs.
– Cost to the government is – $57m from Life underinsurance, $1.3bn from TPD underinsurance and $260m from Income Protection underinsurance.
Source: Rice Warner