Clients need the guidance of a financial adviser to assess their insurance needs, with many people unaware of how much insurance cover they need in case income suddenly ceases.
Such is the assessment of life insurance company TAL, which released new figures showing it paid out more than $947 million in claims last year, a jump of around 12.5 per cent on the previous year’s $843 million payout.
TAL general manager claims, Mary Maini, said while super and direct insurance has resulted in insurance reaching more people and easing the social security burden on taxpayers, financial advisers need to assess whether people have appropriate and proper levels of life insurance.
Most of these claims were taken out by people while still living, with payments after a death now comprising only 47.4 per cent of benefits paid.
Income protection insurance and business expense insurance made up 29 per cent, at more than $275 million.
Cancer was the top reason for claims, making up a quarter of all payments, while circulatory system diseases, injuries and fractures, and respiratory diseases making up the rest.
