Most mortgagees have no IP cover Mercer
Almost two-thirds (63 per cent) of working Australians with a mortgage have no income protection insurance, according to new research from Mercer Wealth Solutions.
Business Leader David Anderson said data from Mercer’s ongoing 2006 financial literacy and retirement readiness study showed “many working Australians are failing to adequately protect their largest asset”.
“Many people with a mortgage have a dangerous wealth protection blind spot that is putting their homes and investments at financial risk.”
The Mercer study also found a “notable lack of understanding among respondents about life insurance”, Anderson said.
It revealed that while all respondents said they were members of at least one superannuation fund, only half (50 per cent) claimed to have a life insurance policy.
More than two in five (44 per cent) stated they did not have any life insurance, while a further 6 per cent were not sure.
A significant number of Australians were found to have a worrying combination of low levels of financial literacy, little preparation for retirement and inadequate insurance.
Among those who claimed to have made many preparations for retirement, two in three (68 per cent) have life insurance, compared to only 26 per cent of those who have made few preparations for retirement.
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