A survey has found that –
- facing dirty nappies,
- an appointment with the dentist, or
- getting a pap smear test,
is better than the reality of getting life insurance for many Australian mums.
Life Insurance for women
An article published on news.com.au/finance/money in early 2011, gave details of some research by Lonergan’s that showed some disturbing statistics. That survey reveals that women who are Mums are seriously under-insured –
- 62% do not have Life Insurance protection
- 83% say their untimely death would put a severe financial burden on their family
- 85% claim frustration at the following aspects –
- the time involved to apply for protection,
- the apparent cost of it – and
- it seems over-complicated.
Whilst there has been modest improvement in this situation, there is a persistent over-representation of women in the under-insured.
Life Insurance generally
Life Insurance provides lump sum financial cover to the policy beneficiary in the event of the insured person’s death.
In emotional terms, that should translate to peace of mind for the ‘survivor beneficiaries’ that –
- whilst they will grieve the loss of their provider,
- their financial position will be one less matter to worry about.
An insurance needs analysis determines the required cover amount
The financial consequences for a family on the loss of mother is only marginally different from when Dad passes. The primary difference in many families, is which is the greater ‘bread winner’. Who brings the greater income to the family.
Life insurance provides money to deal with a number of needs that arise when beneficiaries can be feeling quite fragile. Adequate life insurance cover should take into account –
- Funeral costs;
- Mortgage debt;
- Credit card and/ or ‘other’ debt;
- Residual health costs;
- Emergency contingency;
- Lifestyle costs;
- Future education expenses; and
- Future income needs.
Securing life insurance for women:
Provided that all relevant information is properly provided –
- and assuming that there are no impediments precluding protection availability,
- a policy application takes around 20-minutes in most cases, or,
- in more detailed circumstances, shouldn’t take more than an hour or so.
With most insurers the underwriting process is able to be undertaken by telephone. This process minimises personal concerns about discussing personal health history with their adviser.
The cost of the policy will vary according to a number of factors. For each individual the variables are minimal, including –
- age,
- gender,
- occupation,
- health status/ history and
- level of cover benefit applied for.
What complicates an insurance application if it isn’t that straight forward?–
- inadequate record of the health of direct family members;
- uncertainty about which of the items listed above to cover. This extends to how much cover is adequate. The amount of cover will take into account the value and liquidity of existing financial resources;
- not answering health questions properly, resulting in an exclusion when the underwriter makes the relevant health checks; and
- not knowing who to nominate as the registered owner of the policy.
All of the above matters are resolvable.
They become a lot easier to deal with if the main objective is kept clearly in focus –
- providing the nearest to financial independence as possible, for
- those whom you love and who are dependant on you!
Ensuring adequate life insurance cover with minimal complication..
The advisers at Continuum Financial Planners have had success in getting life risk insurance protection in force for women. Even for applicants with complex circumstances, success has been achieved. We are persistent in our pursuit of Underwriters to ensure that every application gets the most diligent consideration. We are available to work with you to bring peace of mind to you and your family that a well designed insurance plan delivers.
To make an appointment with one of our experienced advisers and benefit from the professional attention you deserve –
please phone our office on 07-3421 3456, or
at your convenience, use the linked Book A Meeting facility.
(This article was first posted by us in March 2011. It has occasionally been refreshed/ updated, most recently in February 2025.)