In partnership with our friends at NobleOak
Recent research commissioned by Australian independent life insurer NobleOak reveals men are more likely to have life insurance than women. This is a reversal of what the research discovered in the previous two years, where more women than men were prioritising their financial security. The survey* of over 1,000 Aussies showed 57 per cent of men compared to 54 per cent of women said they had some form of life insurance including life/death cover, total and permanent disability (TPD) cover, trauma cover and/or income protection insurance.
This shift in focus for women is concerning, as women make up more than 50 per cent of the Australian population and 47 per cent of the workforce, either full- time or part-time. In addition, they account for almost three quarters of all unpaid work – unsurprisingly, the research also showed people who classified their occupation as ‘homemaker/stay-at-home parent’ were also less likely to have financial protection – showing how much we undervalue unpaid work.
What is life insurance?
Life insurance is an umbrella term used to describe a range of insurance products that are designed to help protect you and your family in the unfortunate event of death, severe injury or serious illness. Yes, it’s stuff you don’t really want to think about, but the purpose of life insurance is to provide you and your loved ones with some peace of mind by easing the financial burden should one of these situations ever occur. Life insurance pays out a sum or sums of money upon death, or serious injury or sickness – depending on the type of cover you have. There are four main types of life insurance:
- Life cover (also known as term life insurance or death cover) helps protect the financial security of your loved ones if you die or are diagnosed with a terminal illness.
- Total and permanent disability (TPD) insurance helps protect you and your family from financial stress if you’re permanently disabled and unable to work.
- Trauma insurance (also known as critical illness) – by paying a lump sum following a critical illness or serious injury, trauma cover lets you focus on your recovery rather than worrying as much about your finances.
- Income protection insurance protects a share of your income if you’re ill or injured and can’t work.
No matter what stage of life you’re at, life insurance is an important thing to consider – what would you do financially if you could no longer work? And if you have a partner or dependants, what place would they be in financially if you weren’t there? Business Chicks CEO Olivia Ruello is concerned by the data revealed in NobleOak’s recent survey, and wants to see more women making their financial security a priority.
“I lost my dad suddenly when I was young, and my mum was left to raise four young children by herself. The importance of financial security and independence is something my mum has instilled in me since then, and I’m fiercely passionate about women taking it seriously. Life insurance is an important piece of that puzzle and something all women should consider,” she urges.
Life insurance premiums are calculated based on things like your gender, age, occupation, health and lifestyle. A stepped life insurance premium increases each year. The amount can vary in accordance with factors such as your age, gender and policy type. If considering stepped premiums, consider how long you intend to hold the insurance for, to make sure you have sufficient funds to pay the increased fees each year and remain covered.
The other option is a level premium, which typically does not increase each year with age, and is often set at a more expensive rate from the start. Level premiums can increase over time because of inflation or fee changes from your insurer; however, the changes are likely to be minor compared to a stepped option.
Having life insurance is an important part of financial security and independence – let’s hope to see the number of women making it a priority rise this year.
Get an instant quote at nobleoak.com.au/businesschicks, or call NobleOak for a quote on 1300 108 490 and mention BUSINESS CHICKS to switch and save.
NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 issues NobleOak life insurance products. Please read the PDS available on our website nobleoak.com.au for information and product terms. This article is general information only – it does not consider particular circumstances and is not intended as advice. NobleOak telephone consultants can discuss NobleOak products but do not provide personal advice. You should not cancel any existing life insurance until you have written confirmation that replacement cover is in place. *Survey conducted by PureProfile for NobleOak.