Mary Maini

New figures show that Australia’s leading life insurance specialist TAL paid out more than $947 million in claims last year, an increase of around 12.5% on the previous year’s payout of $843 million.

Of the different forms of life insurance, those taken out to help people while still living account for the majority of the payments, while a payment in the event of death now accounts for just 47.4% of benefits paid.

Cancer features as the chief reason for claims in 2014 overall, accounting for almost a quarter of all payments, followed by circulatory system diseases, injuries and fractures, and diseases of the respiratory system.

TAL General Manager Claims Mary Maini said the increase in the amount of life insurance payments made to customers in 2014 reflected an industry trend of rising claims in recent times as people become more aware of their life insurance benefits.

“The rising amounts of life insurance payouts being paid to customers is in fact very good news because it highlights the value and need of life insurance in protecting customers and their families when they most need it,” she said.

“Life insurance protects the assets and future dreams of people and families, but there is a practical benefit with close to a billion dollars paid by TAL to its customers last year helping them to get back on their feet, to meet ongoing obligations and even achieve future aspirations.”

Mary said many people did not realise how beneficial financial protection has been for so many people in society, people who otherwise might not have been able to get back on their feet or pick up the pieces to continue with the life they had planned.

“While superannuation and direct insurance has helped expand the reach of life insurance and reduce the social security burden on taxpayers and even other relations and friends, the real question people need to ask themselves is do they have appropriate and adequate levels of life insurance?

“Seeing a financial adviser is a great way to assess a person or family’s insurance needs, because it is vitally important to ensure they have the right amount of life cover in case their income suddenly stops.”

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