How much cover do you need

Have you thought about what would happen if you had a serious injury or illness that sidelined you for months, or worse still, if you were to die? Would your family cope financially? The reality is that most Australians have less cover than they need.

Our comprehensive standard cover package follows a ‘needs-based’ approach to provide an appropriate level of cover relative to your stage of life.

Most Australians are underinsured

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:

8 times family income per year for death insurance
4 times family income per year for TPD insurance, and
85% of family income per year for Income Protection insurance

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.

Make sure you have the right cover for you. We’re here to help

Getting your insurance in order is a key part of protecting you and your family financially. Our in-house financial advisers can explain the options available and help you set up an insurance strategy based on your personal circumstances.

Book an appointment

Insurance in your super guide

What to consider

When working out how much insurance cover you need, some things to consider include:

How much income you and your family would need to live if you couldn’t work.
Other types of insurance and assets you have (including how much you have in super).
What help or family assistance would be available.
Whether you have access to other assets or could sell your home and move somewhere else to reduce debt.
What government benefits or workers’ compensation could be available to you.

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.