How much cover do you need

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.