A 2017 report by independent consultants Rice Warner* estimates the median level of life cover in Australia to be $143,500 and the median TPD cover to be $99,500. Rice Warner estimates that these medians meet just 47% of death cover needs and 14% of total and permanent disability needs. Income protection fares only a little better than TPD cover, the median level insured estimated to meet just 21% of needs.
Rice Warner’s report goes on to estimate the insurance needs for 30-year old parents with children to be:
These are estimates only based on medians. How much insurance cover you need will depend on your personal circumstances.
* Underinsurance in Australia 2017, Rice Warner Pty Ltd.
When working out how much insurance cover you need, some things to consider include:
Your circumstances and insurance needs will also change over time. That’s why Mercy Super provides a range of options so you can adjust your cover to suit your personal circumstances. Learn more about Changing your cover.