Top 10 Life Insurance Myths Exposed

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Lifebroker, an insurance provider of income and life insurance has released research and findings into common misconceptions regarding life insurance among Australians.

Southbank, Victoria, December 20, 2010 (PressReleasePoint) -- Lifebroker, an Australian company specializing in life and income protection insurance, have released collated data and commentary on common beliefs among Australians when reflecting on personal risk insurance. An independent leader in the insurance industry, Lifebroker earlier this year commissioned a study of Australians over the age of 25 years.

Key statistics of the February 2010 report found that Australians were in fact underinsured; identifying that 86% of respondents have cover for their cars, 80% for their homes, with only 25% having life insurance.

Collating the February 2010 research report with AIA’s insurers’ claims, Lifebroker has now exposed 10 common myths amongst respondents and Australians alike. The key myths are addressed below, and can be asked of an insurer when reviewing a policy:

* The federal government will take care of my family
* The benefit period for income protection insurance is too short to be worthwhile
* Insurance companies will look for a way to deny a claim
* We don’t both need life insurance
* If one insurance company declines an application, you will be declined everywhere
* Life insurance is a luxury I can’t afford
* I have life insurance through my superannuation, so I am already covered
* Everyone who applies for life insurance must have a medical exam
* My work covers me with group insurance so I don’t need any extra cover
* Personal risk insurance is not a necessity

While each individual circumstance is unique to age, occupation, level of cover and other defining factors of an insurers policy, these common misconceptions typically are far from the truth.

AIA Australia’s Howard Williams stated:

“Certain rare conditions are uninsurable but insurers find unique and creative means to manage most risks. It also happens that should a person be uninsurable today, going forward their condition may improve and insurance terms may be obtained.

At AIA, we try to find a way to pay claims as quickly and transparently as possible. Between September 2009 & September 2010 we declined less than 2% of all claims submitted.”
Lifebroker compares insurance with 13 different companies in categories such as Income Protection, Life Insurance, Trauma and Disability, Mortgage Protection and more. Serving as an individual entity to review your current insurance policies or create the most applicable new cover to ensure that you are provided opportune benefits when required.
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