Mention life insurance and many women get the need for it, some will fall asleep thinking about it, while others will park the potential for risk, for another day.
But the business of life insurance is booming, and increasingly more products are coming onto the market specifically targeted at women.
According to a survey by Lonergan research conducted in 2011 and published by financial product comparison website finder.com.au, 83 per cent of women say that their death will place a huge financial burden on their family.
Perhaps more worrying is that another study found that women tend to be more worried about their immediate health and weight, than being diagnosed with a life threatening illness, according to a survey published during Women’s Health Week in September.
Most Australians have some idea of what life insurance is, but not many of have actually purchased a policy and of those who have, few could tell you how much life insurance they actually have.
Surprisingly many of us might be paying for some form of life insurance within superannuation, and it’s probably also true that it may or may not be totally right for you.
Some of those holding life insurance may also own a total and permanent death (TPD) policy, probably in their super funds, and an even smaller subset will have income protection insurance.
So if I was to ask the average person on the street if they knew much about life insurances or indeed trauma insurance, and what it could be used for, I’m pretty confident that almost most of would have no idea!
Trauma insurance is actually a lump sum tax-free payment made if you are diagnosed with a critical but not necessarily fatal illness like some cancers or heart disease.
Trauma policies typically have no wait period and are designed to ensure that you have the means necessary to get the care you need should you become critically ill.
This type of insurance is particularly important for those who do not have the safety net of a family or large savings balances.
It’s also helpful for stay-at-home parents not eligible for income protection insurance who could use the payment to manage the household or pay for childcare while they recover.
Trauma Insurance is more expensive than life or TPD insurance but given one in two Australian women and one in three Australian men will be diagnosed with cancer in their lifetime, it is definitely worth considering.