Jim Minto
Australians will spend some $791.4 million[1] “in the name of love” before Valentine’s Day – averaging about $86[2] each.
But despite their pledges of undying love, figures from research commissioned by Australia’s largest life insurer TAL show that most of us are not financially protected as the sentiments ofeverlasting love suggest they should be.
According to TAL’s own latest figures, just 52% of Australians say they have some form of life insurance, with individual types of financial protection held even lower for disability cover (24%), income protection (26%), critical illness (20%) and life (death) insurance (43%).
Other research shows that, should they lose their job, Australians’ savings would only last 3.7 months, down from 4.6 months in 2013[3].
“There are certain occasions that lead us to think about what matters most to us and Valentine’s Day is certainly one of them,” TAL Group CEO Jim Minto said.
“At TAL we’re all in favour of love and romance. Indeed it is love that often spurs people to get the cover they need to safeguard their futures and those of the people closest to them.
“But it’s also hard to ignore the reality that so many people are leaving those futures to chance by either not financially protecting themselves and their loved ones or not ensuring they have adequate protection should they never be able to work again.”
The Financial Services Council says the annual starting cost of life insurance of $500,000 for a 35-year-old male, or $600,000 for a 35-year-old female is $437[4] around $8.50 a week, although in many cases the costs would be higher.
“This Valentine’s Day we’re simply urging Australians to take a step beyond the cards, flowers, dinners and getaways when they think about their lifelong commitment to their loved one,” Mr Minto said.
“Have a look at your lifestyle, dreams and long term commitments and work out your protection needs. A financial adviser is best placed to do this. TAL alone pays out over $840 million a year in claims which helps people get back on their feet.
“What it comes down to is that you can help make ‘happily ever after’ happen while you remember to celebrate your love at Valentine’s Day.”
Facts and figures:
Aussies in love: where the dollars go[5] |
|
| Most Popular Valentine’s Day Gifts | Australian Spend (2014) |
| Romantic Getaways | $441.6 Million |
| Flowers | $93.3 Million |
| Chocolate & Sweets | $90.9 Million |
| Clothing & Intimate Apparel | $68.2 Million |
| Dining | $42.3 Million |
| Valentine’s Day Cards | $14.6 Million |
In sickness and in health
- One in five men and one in seven women will have had a critical illness before the age of 64[6].
- One in three men and one in four women will be diagnosed with cancer before the age of 75[7].
- Six in ten Australians will be disabled for more than one month during their working life. One in fourwill be disabled for more than three months[8].
For richer, for poorer
- $86 – The average spend per person before Valentine’s Day.
- $437 – starting annual cost of life insurance of $500,000 for a 35 year-old male and $600,000 for a 35 year-old female, or $1.20 per day
- $58,878 – amount paid on average for each life insurance claim in Australia in 2013.
- $5 billion – Life insurance payments in Australia in 2013[9], which $843 million paid out by TAL alone.
———–
[1] IBISWorld (2014) Lovers Pick Premium this Valentine’s Day, http://www.ibisworld.com.au/media/2014/02/05/lovers-pick-premium-valentines-day/
2 IBISWorld (2014) Lovers Pick Premium this Valentine’s Day, http://www.ibisworld.com.au/media/2014/02/05/lovers-pick-premium-valentines-day/
3 RaboDirect Financial Health Barometer, 2014
4 http://www.fsc.org.au/downloads/file/MediaReleaseFile/2005_0308_fastfacts.pdf
5 IBISWorld (2014) Lovers Pick Premium this Valentine’s Day, http://www.ibisworld.com.au/media/2014/02/05/lovers-pick-premium-valentines-day/
6 Rice Warner Report on Underinsurance in Australia 2011
7 AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra
8 Fabrizio, E (2007) Australia & NZ Disability Income Experience www.actuaries.org/IAAHS/Colloquia/Cape_Town/Walker_-_Income_protection.pdf AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra
9 Risk Store http://riskinfo.com.au/news/2014/06/17/record-claims-paid-in-2013/