Valentines Day - When true love does not run smoothly
Media Release -
Australians will spend some $791.4 million1 “in the name of love” before Valentine’s Day – averaging about $861 each.
But despite their pledges of undying love, figures from research commissioned by Australia’s largest life insurer TAL show that most of us are not financially protected as the sentiments of everlasting love suggest they should be.
According to TAL’s own latest figures, just 52% of Australians say they have some form of life insurance, with individual types of financial protection held even lower for disability cover (24%), income protection (26%), critical illness (20%) and life (death) insurance (43%).
Other research shows that, should they lose their job, Australians’ savings would only last 3.7 months, down from 4.6 months in 20132.
“There are certain occasions that lead us to think about what matters most to us and Valentine’s Day is certainly one of them,” TAL Group CEO Jim Minto said.
“At TAL we’re all in favour of love and romance. Indeed it is love that often spurs people to get the cover they need to safeguard their futures and those of the people closest to them.
“But it’s also hard to ignore the reality that so many people are leaving those futures to chance by either not financially protecting themselves and their loved ones or not ensuring they have adequate protection should they never be able to work again.”
The Financial Services Council says the annual starting cost of life insurance of $500,000 for a 35-year-old male, or $600,000 for a 35-year-old female is $4373 around $8.50 a week, although in many cases the costs would be higher.
“This Valentine’s Day we’re simply urging Australians to take a step beyond the cards, flowers, dinners and getaways when they think about their lifelong commitment to their loved one,” Mr Minto said.
“Have a look at your lifestyle, dreams and long term commitments and work out your protection needs. A financial adviser is best placed to do this. TAL alone pays out over $840 million a year in claims which helps people get back on their feet.
“What it comes down to is that you can help make ‘happily ever after’ happen while you remember to celebrate your love at Valentine’s Day.”
Facts and figures:
|
Aussies in love: where the dollars go1 |
|
|
Most Popular Valentine’s Day Gifts |
Australian Spend (2014) |
|
Romantic Getaways |
$441.6 Million |
|
Flowers |
$93.3 Million |
|
Chocolate & Sweets |
$90.9 Million |
|
Clothing & Intimate Apparel |
$68.2 Million |
|
Dining |
$42.3 Million |
|
Valentine’s Day Cards |
$14.6 Million |
|
In sickness and in health |
One in five men and one in seven women will have had a critical illness before the age of 644. One in three men and one in four women will be diagnosed with cancer before the age of 755. Six in ten Australians will be disabled for more than one month during their working life. One in four will be disabled for more than three months6. |
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For richer, for poorer |
$86 – The average spend per person before Valentine’s Day. $437 - starting annual cost of life insurance of $500,000 for a 35 year-old male and $600,000 for a 35 year-old female, or $1.20 per day $58,878 - amount paid on average for each life insurance claim in Australia in 2013. $5 billion Life insurance payments in Australia in 20137, which $843 million paid out by TAL alone. |
Further information:
Stuart Snell 02 9448 9879/0417 921 235 stuart.snell@tal.com.au
About TAL: The specialist voice of life insurance in Australia
TAL is Australia’s largest life insurance company with leading competitive offerings in each of its core distribution channels: direct to customers; through financial advisers; and via group and workplace superannuation schemes. With in-force premiums of $2.2b, TAL provides more life insurance solutions to Australians than any other insurer. TAL is owned by The Dai-ichi Life Insurance Company, Limited, one of the world’s largest life insurers.
1. IBISWorld (2014) Lovers Pick Premium this Valentine’s Day
2. RaboDirect Financial Health Barometer, 2014
3. http://www.fsc.org.au/downloads/file/MediaReleaseFile/2005_0308_fastfacts.pdf
4. Rice Warner Report on Underinsurance in Australia 2011
5. AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra
6. Fabrizio, E (2007) Australia & NZ Disability Income Experience www.actuaries.org/IAAHS/Colloquia/Cape_Town/Walker_-_Income_protection.pdf AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra
7. Risk Store