‘Incredibly reassuring’: Why it pays to have life insurance

It can be hard to put a value on life insurance. Sure, you can look at your renewal notice and see how much it costs you. But what is the real value of that cover?

According to research commissioned by Zurich Australia, one of the benefits of life insurance is the feeling of security it gives you, right from the day you buy it.

More than 8 in 10 Australians think those who have life insurance are*:

• more prepared for their future (86%)
• more capable of protecting their family (84%)
• someone who cares about their future (82%)
• more in control of their life (80%)

So there are psychological benefits to having life insurance, even if you don’t necessarily need it right now.

But let’s face it, you don’t just buy life insurance for peace of mind. You’re paying for the possibility you might one day need to make a claim – knowing how important that financial support would be for you and your loved ones.

That’s when the real value of life insurance kicks in, and it’s what Zurich does every day for families around Australia.

A closer look at claims

Last year Zurich Australia paid over $390 million in life insurance to 2,797 of our customers. As you can see below, the majority of those claims (69%) related to Income Protection – a type of cover that’s typically tax-deductible and pays a monthly benefit of up to 75% of your regular salary.

Source: Zurich Australia

We know from our research that 81% of Australians say their mental health would be significantly affected if they lost their ability to earn an income and didn’t have the right insurance*.

Imagine the huge relief our Income Protection claimants felt when they started receiving a monthly income protection benefit to support them financially after their regular income stopped.

You never know when you’ll need it

It would be nice to only pay for life insurance when you’re most likely to need it. But life is unpredictable, and serious injuries and illnesses can strike at any age.

In 2022, 42% of our Income Protection claimants were aged between 36-50 (see chart below). Fortunately for these people, they were able to receive an Income Protection benefit during a life stage where family and financial responsibilities are often at their greatest.

And what about the largest group of claimants, those aged 51-65? When you think about the impact a serious illness or accident could have on their career prospects and retirement plans, you can appreciate how valuable an Income Protection claim can be for those people too.

Source: Zurich Australia

Learn more about claims

We’ve focused on Income Protection claims in this article, but think about the difference a lump sum payment could make for a family coming to deal with a terminal illness diagnosis, a major heart attack, cancer or a permanent disability. Money can’t solve all problems, but it can help you access optimal  medical treatment, make changes to your lifestyle, or pay for a loved one to take time off work to provide care.

At Zurich, we truly understand the significance of paying a claims and the impact it has on supporting our customers financially, emotionally and mentally when they are facing difficult times. We see it every day.

To learn more about the claims we pay, and how we provide more than just financial support at claim time, visit our website.