Australia: Women can buy income protection for less than $15 a week

A 30-year-old non-smoking female working in an administrative role earning $50,000 will pay less than $58 to receive a monthly benefit of $3000¹, should they need to stop work for health reasons.

Policy owners will find their income protection contributions are generally tax deductible - up to 48.5 per cent is a legitimate tax claim for those on the highest tax scale.

According to Norwich Union Australia’s Shaun Williams, many people don’t have income protection because they mistakenly believe it is simply too expensive.

“For some time there has also been the misconception that women don’t need to insure their income to the same level as men. This is no longer the case and women need to make sure they are on equal footing with their counterparts,” said Shaun.

With one in 11 women developing breast cancer in their lifetime² there is a very real need for women to protect their finances in case of a health issue or worse.

Income protection or life insurance isn’t necessarily just for the main salary earner in a family either. Families need to consider what the loss of a home-maker would financially mean, for example the possible cost of childcare or hiring a nanny during treatment and rehabilitation.

“Illness or loss of the primary child carer might mean their partner has to take lengthy time off work or need to suddenly begin paying for long day care. These costs need to be taken into account when financial planning for the whole family,” said Shaun.

While many superannuation plans do include an income protection and life insurance component in most cases it will not be adequate for future needs.

Life insurance is also a very important part of financial planning for the future. A 30-year-old non-smoking female working in an administrative role will pay less than $44 a month for death and total and permanent disability cover of $500,000³.

“Women in today’s society need to be more independent in many areas of their lives. Becoming financially secure for the future is just one other area that needs to be considered. The marriage rate is dropping and divorce rates are climbing so women really need to plan ahead for themselves and their families,” said Shaun.

An independent financial adviser can assist in creating a robust financial plan incorporating income protection and life insurance.

Note: A 30 year old non smoking male working in an administrative role earning $50,000 will pay approximately $43 a month for income protection with a monthly benefit of $3000⁴.

Shaun Williams is available for interview.

¹ Provided by Norwich Union Life Australia Limited, based on 30 year old non smoking female working in an administrative role earning $50,000, payment until age 65 and 30 day waiting period
²Breast Cancer Network Australia. www.bcna.org.au – cancer statistics, 2003.
³Provided by Norwich Union Life Australia Limited, based on 30 year old female non-smoker working in an administrative role.
⁴Provided by Norwich Union Life Australia Limited, based on 30-year-old non-smoking male working in an administrative role earning $50,000, payment until age 65 and 30 day waiting period

For further information, please contact:
Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632

Note to editors:

• Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company to Norwich Union. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
• Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
• Aviva is the world's seventh-largest insurance group and the biggest in the UK. It is the leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$77.3 billion, and more than A$593 billion of assets under management (as at 31 December 2002). The group has more than 59,000 employees and 25 million customers worldwide.
• This document does not contain all the terms and conditions attaching to product benefits and options. For a full list of terms and conditions please refer to the Offer Document. A policy for insurance cover or an application for an issue of an interest as described in this document can only be effected after completion of the application form contained in a current Offer Document for the product.

  The information in this document reflects Norwich Union's understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended, to be comprehensive or a substitute for professional advice on specific circumstances.

  The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.