CommInsure survey shows Australians severly underestimate the cost of being off work for an extended period

Australians do not consider life insurance a priority and severely underestimate the cost of being off work with illness or injury, according to research by Commonwealth Bank’s insurance arm CommInsure. Many respondents rank Christmas as more important than regular “health checks” on their insurance, the survey finds. The survey shows most Australians could support themselves for only about six months after a serious illness or injury that affects their ability to work. While 85% of respondents cite savings as a source of income support, more than 50% have “severely underestimated” the cost of treating serious injuries. Many Australians have a false sense of security about wealth protection and believe they can “turn to support networks such as savings or the Government to cover the costs of unforeseen circumstances”. Overall, 60.3% of respondents have life insurance, with 41.3% covered through their super fund only. While insurance provided within super is a good start, it’s important to continually assess your insurance needs, taking into account the worst-case scenario to ensure adequate protection in the event of a serious injury or illness.