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Underinsurance in
Australia
The underinsurance level in Australia
$1,811
Insurance level needed
$4,581 BILLION
Current under-
level of insurance
insurance gab
$2,770 $1,811
BILLION BILLION
Superannuation funds needs to consider differentiating members’
default cover by marital status and number of dependent children
instead of just by age.
For a typical middle-income Australian family with 2 children.
The current insurance level is not enough for needs!
$680,000 $258,000
is the amount of is currently the median
Life Insurance needed level of Life Insurance
Cost of underinsurance to the government
Income Protection Life
$260 MILLION $57 MILLION
Total and Permanent Disability
$1,300 MILLION
The default covers of typical superannuation funds do not meet
the insurance needs of many families
This document contains general information and does not take into account your personal objectives, financial situation or needs.
Sources: Ricewarner.
