Aviva today announced homemakers will now be able to apply for life insurance benefits up to A$1 million.
Aviva today announced homemakers will now be able to apply for life insurance benefits up to A$1 million.
Financial advisers and customers have been demanding that life insurance is made more accessible for everybody - and Aviva has made this possible with an upgrade to Aviva's Protectionfirst life insurance range.
"At Aviva we recognise the important role the homemaker provides and we also understand the financial costs should that person not be around to look after the home and children," said Natalie Eckersall, Aviva's general manager wealth protection.
"Homemakers, housewives, stay at home dads or Mr Mum - it's not about what this product is called, it's about an organisation finally providing the necessary cover," commented Natalie.
"Many parents choose to stay at home at some stage in their lives and in the past the cover available just wasn't enough. Aviva has recognised this and now our customers can access life insurance for both members of a couple that will actually properly protect their family," she said.
"Speaking personally, I understand the issues. My life insurance policy is a very important part of my family's financial protection plan, yet I have many friends that choose to stay at home, and it is clear that the financial consequences on their families if the unthinkable was to happen would be severe," said Natalie.
"We know homemakers are underinsured in Australia because of a perception that they don't earn income so there is no need to insure them - and this simply isn't the case," said Natalie.
The loss of the primary care giver means either the main breadwinner has to give up work or child care options need to be explored. However this can prove expensive. The average cost of childcare for one child per week is A$240[1] - multiply this by at least two for additional children and the cost sky rockets to an annual cost of more than A$23,000.
Also, some families may need flexible care which a childcare centre can't provide, however an experienced nanny can range from A$22 to A$25 an hour[2] - an expensive choice for many families.
With 56% of all women not in the workforce listing home duties and childcare as their main activities[3], there is a huge group of women who should be looking at protecting their families.
"Families need to ask themselves if something happened to the primary child carer could they afford to pay for childcare, plus all the other costs that children bring," said Natalie.
"And we all know it's not only the financial issues families have to deal with if they lose the primary care giver. Life insurance can reduce the financial issues so the remaining parent can focus on all the love and support necessary during a very difficult time," commented Natalie.
Life insurance is not necessarily an expensive option - especially when you consider the peace of mind it can give a family. For example a 40 year old female non smoking home worker can receive insurance benefits worth A$1 million for only A$49 a month[4].
"When considering life insurance it's important to think about both members of a partnership, rather than just the traditional ‘main breadwinner'. Your position in a family is certainly more than just the income you bring in to the home and it is important to consider this when looking at your long term financial needs," said Natalie.
-ends-
For further information please contact:
Tim Cobb
General Manager Marketing and Public Relations
Phone: (03) 9829 8509
Mobile: 0418 529 387
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world's fifth-largest insurance group, the UK's largest insurance services provider (based on gross worldwide premiums at 31 December 2005), and one of the leading providers of life and pension products to Europe, with substantial positions in other markets around the world.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of A$82.3 billion (£35 billion) and assets under management of A$745 billion (£317 billion) at 31 December 2005.
- The information in this document reflects Norwich Union Life Australia Limited (ABN 34 006 783 295) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The 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 and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.
[1] Australian Labor Party: Childcare costs go bananas, Jenny Macklin, February 2007.
[2] Childcare matters, Sydney 2006.
[3] Australian Bureau of Statistics, Feature Article - Labour force participation in Australia, Canberra, January 2005.
[4] Calculated based on Aviva Protectionfirst death cover with no qualifications.