What's the chances of needing to claim on your personal insurance policy?


We all have to learn how to prioritise big decisions

There are some statistics in life that you simply need to know so you can make better choices.

Most people wouldn't dream of travelling overseas without Travel Insurance to protect their luggage and their health. Nobody wants to be stranded overseas with no luggage or worse, in a foreign hospital hoping the local doctors have the right skills, medication and the sanitation standards that's not going to put you at greater risk.

So what's the chance of you needing to make an insurance claim?
Here's what you need to know.

  • 1 in 3 chance of needing to claim because of a medical Critical Illness

  • 1 in 4 chance of needing to claim on your Income Protection

  • 1 in 10 chance of needing to claim on your Life Insurance before expected

  • 1 in 20 chance of needing to claim for a Total and Permanent Disablement

Now you know how close those numbers, maybe it's time to take a second look at your personal insurance cover for you, your family and your business.

The simple difference between personal insurance and general insurance

Personal insurance is insurance to protect 'people'.

  • This would include life insurance, Medical Crisis or Trauma Insurance, Income Protection, Total and Permanent Disability (TPD)  and even Business Fixed Expenses cover (because it's to protect a person - you the business owner.
  • Personal insurance is usually applied for once and guaranteed to renew every year without any need to apply regardless of any changes in your health or occupation. 

General insurance is insurance to protect things. General insurance usually needs to be renewed and reapplied for.

  • This would include car insurance, home insurance and similar policies for 'things'
  • General insurance usually needs to be renewed and reapplied for every year so if there had been a change in your claims history, your financial position, driving record or many even your health, there is usually no guarantee this insurance will be available to you the following year.

The big 4 numbers represent the statistical reality for all Australians. Make sure you prioritise the people in your life and business more than the 'stuff'.

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 Amazon.com 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.

drew browne pic

Drew Browne

Sapience Founder & Director.
Simplifying Financial Complexity

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