Parents with young children are ignoring insurance – at the most crucial time in their lives to have protection.
New research by comparison website Finder.com.au found 50 per cent of parents of kids aged 12 or under say they don’t have life insurance, while another 9 per cent say they plan to get some.
Some may have cover they didn’t know about – separate Finder research showed one in five Australians do not know whether their superannuation includes life insurance.
“In the excitement of building a family, life insurance probably isn’t top of mind for many parents,” said the site’s spokeswoman Bessie Hassan.
“Some cover is better than nothing so it’s worth at least taking out a policy through superannuation.” Automatic life insurance cover in super might only be $50,000-$100,000 and unlikely to be enough if disaster struck, said Planning for Prosperity adviser Daniel Budreika.
“Think about the purpose of the cover rather than ‘do I want life insurance?’. Think about the outcomes it will generate for the family,” he said.
The loss of one parent to death or permanent disability can be financially devastating. The cost of repaying debts, childcare and education and replacing lost income should be included when calculating how much cover is needed.