As a member of MTAA Super under the age of 70, you automatically receive default insurance cover. But is it enough to protect you and your family from the unexpected?

As a nation that is chronically underinsured, it seems that life insurance is something that most of us would rather not think about. 

But, with the average Australian mortgage at approximately $215,000 (monthly repayment of $1,515)¹ and the estimated cost of raising a child from infancy to adulthood at around $500,000 per child, life insurance becomes an important consideration. 

What would happen to you, your family or your business if you were to become seriously injured and unable to work? And what if you died? Who would cover your mortgage payments, debts, or your children’s school fees?

Life insurance provides financial protection when life doesn’t go according to plan.  

We’re underinsured

Rice Walker Actuaries estimate that people in their 30’s who are raising young children need between 10 and 13 times their combined gross income (before tax) in life insurance cover¹.

The diagram below illustrates the number of years covered by insurance among Australian families – and the chronic level of under insurance 

In the study undertaken on behalf of the Investment and Financial Services Association (IFSA) in May 2005, Rice Walker found that a staggering 60% of families do not have enough life insurance to look after their loved ones for more than a year. And only 4% of people with dependant children have more than 10 times their income in life insurance.

How much insurance do I need?

The question isn’t really how much life insurance you need, it’s how much money your family will need if your income no longer exists. If you haven’t looked into your life insurance needs and you can answer 'yes' to any of the following questions, it may be time for you to speak to a professional and get advice regarding insurance.

Ask yourself these questions?

-Do you have a regular mortgage repayment to meet?
-Are you a small business owner?
-Do you have or are you about to have children?
-Do you have people who are financially dependent on you? 

As a member of MTAA Super you benefit from low cost insurance premiums that provide you with comprehensive cover.

See MTAA Super’s Low Cost Insurance options for further information.