Assisting with Australia’s Underinsurance Problem
It is generally considered that Australians do not have enough insurance. Consequently, Australian families are exposed to financial hardship by not correctly calculating adequate levels of life insurance to cover their needs. According to Insurance Watch, Australians are underinsured by $3.1 trillion. 56% of Australians have life insurance. Of those who do, 65% only have the inadequate default level of life insurance in their super fund. Underinsurance can happen because people do not value their assets, or their future earned income properly. However, some people are underinsured because they think that insurance is not affordable or accessible, they do not consider their assets worth insuring, nor understand the products or they're overconfident about their risks.
What are the consequences of being underinsured? Uninsured or underinsured means the entity at risk will have to pay for the full cost of replacement, in the case of loss of income. Or a family may find themselves in a financially difficult situation in the event of the insured's death. Not having insurance can erode savings and investments, deplete assets, or result in a financial crisis.
Helping Australians
At Pivotal Insurance Group, our aim is to provide a simple streamline Insurance service for our clients. We note the life Insurance Industry has undergone significant changes following regulatory reforms, particularly in areas of product, distribution and consumer protection. The changes have resulted in insurance being complicated, expensive for advice and advisors leaving the industry. As the number of advisors goes down, the cost of delivering advice goes up and becomes much more unaffordable for the average Australian. Pivotal Insurance Group has the solution, with our straightforward, cost-effective process. Our clients can get insured without advice fees, under general advice.