Protect your biggest asset

Posted on: Thursday, 17 August 2017.

Many Farmers are failing to protect their biggest asset – themselves

Farming remains one of the most hazardous occupations in Australia, with 56 deaths and injuries already recorded in the first three months of 20171. Apart from the individual’s pain and suffering, there is a big economic cost to the farm through delays in completing work, payment for medical treatment (often involving extensive travel), and wages for replacement workers. So why are so few protecting themselves with insurance?

Your farm can be both you home and your livelihood, so it’s doubly important that you don’t risk losing it.

While many Australians take out health insurance to protect against immediate needs such as hospital stays, they don’t consider the long-terms needs covered by life insurance. Long-term debilitation could have major impact on your financial security. But sadly, 30% of Australians say they would wait for something to happen before they purchased life insurance.2

It’s interesting to note the generational differences when it comes to insurance needs. Gen X is more likely to have life insurance cover greater than $1 million. This can be linked to the fact they are entering their 40s, which is typically a higher-risk age due to dependent children and greater debt levels. 16% of Baby Boomers didn’t know what amount of cover they had – indicating they are less concerned with insurance. Like Gen Y, they are less likely to have big financial responsibilities because many Baby Boomers have paid off their mortgages and their children have left home.2

Those aged 40+ with dependents and a higher mortgage typically have more reasons to be insured. This is evidenced by the fact that people in this age group tend to have more insurance cover than others, with 92% having home and contents and 70% with life insurance. These percentages are much higher than the rest of the population.2

Insurance is extremely important to this group because they have higher financial risks. As a result, they are more knowledgeable about life insurance and are more active in taking up cover outside of super. They also experience more emotional rewards for being insured – with 46% saying life cover gives them peace of mind in knowing their family will be looked after. This contrasts with other population groups who have less knowledge and are more likely to feel indifferent to life cover. 2

Life insurance isn’t just about protecting your family financially if you die. It’s about protecting your lifestyle if you get sick or injured. So, if you can’t work for a while – or ever again – you have a financial back up plan.

There will always be strong reasons to include life insurance as a critical part of your plan for life.

To find out more about life insurance options, call us on 08 6279 2300.

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1 Farm Hazards; Australian Farm Deaths & Injuries Media Monitors Snapshot January 1 – March 31, 2017 (2017), The University of Sydney

2 Adviser Insights; Consumer insights into an evolving life insurance marketplace; (2015); Asteron Life (Part of the Suncorp Group)

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