The numbers of life

2016-07-04
Life and living is risky - thats 'normal' - not having a backup plan in place to manage that risk - thats 'crazy' Life and living is risky - thats 'normal' - not having a backup plan in place to manage that risk - thats 'crazy'

Let's be really honest here. It doesn't take long to realise that life never quite works out just the way we planned.

To suggest it's unpredictable - is an understatement.

Call it chance, accident, fate or even serendipity; sh!t happens. Ok now that's out in the open, and we're being honest, the point we're making is life just happens to us all and some things catch us all off guard. How we deal with hard times makes us human, how we plan for those potential hard times makes us successful.

When hard times happen remember it's not personal - its just the statistical realities; its the numbers of life

How to plan for the reality of risks in our life

When hard times happen, you can't take it personally as if it's directed solely at you and your family or even your business. The statistical reality is that we all suffer ups and downs in ways we never expected. That's why we use life insurance products as a safety net, just in case.

Obviously, everyone's circumstances are very different. People who drive cars are more at risk of being in a car accident than those who don't drive. If only life was that simple and predictable — it isn't. In 2016 sadly 176 pedestrians were killed in traffic accidents in Australia.

Time for a straightforward conversation about the numbers

We believe that core to protecting and providing is having an honest understanding of the numbers of life so we can all have the opportunity to put a backup plan in place if something unexpected happens.

Drew's Rant Alert.
Now if you're the type of person who upon hearing this immediately reaches for an anecdotal story 'about a friend's grandmother who's still alive at 95 and still smoking a pack of unfiltered cigarettes a day'...so smoking really isn't a risk to anyone like we're told...' we probably aren't going to get along so please click here to go somewhere more appropriate.

The good news is (if you're still reading) you do have the opportunity to help prepare for many of life's ups and downs so that when the hard times arrive you, your family and even your business are able to survive them.

Life happens by The Numbers.

The chances of you needing to make an insurance claim

What are the chances of you needing to claim on your personal insurance policy in Australia?

  • 1 in 3 chance of needing to claim for Critical Illness insurance
  • 1 in 4 chance of needing to claim for Income Protection insurance
  • 1 in 10 chance of needing to claim for Life insurance or Terminal Illness
  • 1 in 20 chance of needing to claim for Total and Permanent Disability (TPD) insurance

Jump to facts about:


What does this mean for Australian families?

In 2014 there were 11,237 unexpected deaths of married people between 15-64.

  • This means 31 families per day unexpectedly lose a family member
  • Given that 48% of families have at least 1 dependent child, this means 15 families every day with a dependent child, will lose a parent

What are the chances of you winning Lotto or Powerball?

  • Chance of getting 6 winning Lotto numbers 1 in 8,145,060
  • Chance of winning Powerball 1 in 76,767,600

What are the leading causes of insurance claims?

Of the 4 classes of personal insurance available, Life insurance, Total and Permanent Disability (TPD), Medical Crisis and Income Protection, these are the leading reasons for claims being made on these personal insurance policies.

The leading causes of insurance claims
Death Total Disability Medical Crisis Income Protection
Cancer Musculoskeletal Cancer Musculoskeletal
Heart Disease Cancer Heart Disease Mental Illness
Respiratory Disease Mental Illness Neurological Disorders Cancer

 

Diabetes in Australia

275 Australians develop diabetes every day

  • 56% are males, and
  • 44% are females
  • Around 92% of people with Type 2 diabetes were 45 years old or more
  • 45% were 65 years or older

The additional risks for business owners working with multiple people in business

The odds of a business partner dying or becoming totally disabled before age 65
Number of
business partners
Chance of 1 partner
dying before age 65
Chance of 1 partner
dying or becoming
totally disabled before age of 65
2 partners 35 in 100 52 in 100
3 partners 47 in 100 67 in 100
4 partners 57 in 100 77 in 100
5 partners 66 in 100 84 in 100
6 partners 77 in 100 89 in 100

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, is a member of the international B1G1 Business for Good Giving 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 Amazon.com and you can connect with him on LinkedIn.

drew browne pic

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