Omniwealth News
You are here: Home \ Blog \ News
Do I need to insure my income?
Wednesday, April 05, 2017

Australians are ditching life insurance in droves because of huge rises in the premiums they pay. 

It is estimated that one-third of life insurance policies are being cancelled within six years, and insurace specialists warn that families risk financial ruin by quitting without considering cheaper options.

"People think it's outrageous," certified financial planner Patrick Canion said of the surge in the price of insurance.

"Insurance companies have hugely increased premium rates because they are losing money."

Insurers do not release details abut cancellations, but independent figures paint a disturbing picture.

Recent research by Rice Warner found that life and disability insurance premiums climbed 215 per cent in four years and income protection premiums jumped 82 per cent, while new figures from industry regulator APRA show that overall premium income has slid almost 20 per cent in two years. If policy numbers were steady, premium income should have climbed strongly.


< Back