Insurance Articles
Australians some of the most underinsured in the developed world
Posted by admin - 29/07/09 at 04:07:40 pmThe federal shadow minister for financial services and corporate law Chris Pearce has called on the federal government to address the short fall in the level of Life Insurance cover held by Australians.
“Australia is one of the most underinsured nations in the developed world, ranking 16th for life insurance density and penetration,” he said.
“Trauma benefits are generally used to pay medical costs and recovery. They can also be used for the payment of lifestyle adjustments which may be needed to a person’s home or vehicle,” Pearce said.
Unlike TPD insurance, Trauma Insurance is not an allowable benefit for superannuation funds as it does not conform to the release requirements of the Superannuation Industry (Supervision) Act, so most individuals have no cover at all.
Pearce said while most Australians have access to life insurance through their super fund, more needs to be done to ensure people’s cover sufficiently meets their needs.
As with other forms of insurance there was an inadequate take up of trauma insurance, Pearce said.
The federal government are expected to overhaul the superannuation and tax arrangements in the upcoming federal budget in May.
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