The human face of Australia's underinsurance problem

Families facing a very Australian problem of underinsurance Families facing a very Australian problem of underinsurance

The very Australian problem of underinsurance

When a 'she'll be right' attitude puts your family at risk

You don’t have to look far to find a story in the media about Australia’s underinsurance problem.  It seems every bushfire season the same media reports another near identical tragedy of families losing everything and being underinsured or worse, not insured at all.

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  • What we don’t see are the many personal stories about the underinsured individual who can no longer work due to sickness or injury or the widow who can’t support her family after the unexpected death of her uninsured partner.
  • Sadly these stories are common but because we don’t talk about them, the danger is that anyone of us could be caught up in the statistical reality of losing a family member – with catastrophic consequences.

It seems our 'she'll be right' attitude is actually failing us when it comes to protecting ourselves and our families.

Watch the real life story of Emma — a Human Face to Australia’s underinsurance problem

Emma's story courtesy of Zurich Australia YouTube channel

Who’s most at risk in Australia?

The people generally most in need of life insurance and income protection are

  • families with dependent children,
  • those caring for frail ageing parents and
  • those who rely on a sole earner’s income

What this means for our families and children

  • In 2014, there were 11,237 unexpected deaths of married people of working age (between 15 to 64 years).
  • This equates to more than 31 families per day unexpectantly losing a member.
  • Given that approximately 48% of families have at least one dependent child, this means that around 15 families per day with dependent children lose a parent.

For these families, the impact of unexpectedly losing a family member is not only the emotional trauma but the potentially significant financial damage this loss could represent and its domino effects through the family.

The biggest problem is that most people don't think it's a problem. Drew Browne

If you're uncertain of your family's level of life insurance coveror if you just want to start a more informed conversation about your options, please Contact Us for a confidential chat today.

Drew Browne

Drew specialises in helping people protect and provide for what matters most in their lives. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His company Sapience Financial and Investment Services is committed to using business solutions for good in the community, and in 2015 certified as a B Corp. In 2017 Drew was recognised in the inaugural Australian Westpac Businesses of Tomorrow national awards. Drew writes for successful Small Business Owners and Entrepreneurs at Smallville, his blogs can be read on and you can connect with him on LinkedIn.

Any advice provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.

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Drew Browne

Sapience Founder & Director.
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Why this should matter to you

  • AMP
  • AIA
  • BT
  • TAL
  • CommInsure
  • MLC
  • Zurich
  • One Path
  • Macquarie
  • Asteron
  • Clear View
  • NEOS

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