Each year, approximately 350,000 people are diagnosed with cancer in Australia and more than 400,000 people are hospitalised for heart conditions.
Each year, approximately 350,000 people are diagnosed with cancer in Australia1 and more than 400,000 people are hospitalised for heart conditions2.
Of this, many cases are curable but the financial and emotional costs are massive - yet few people are financially covered by privately owned income protection and life insurance.
Over the same period, roughly the same numbers of people experience a claimable event on a general insurance policy. Half a million households3 will experience an attempted or actual break in and one in eight people will report a stolen or vandalised car4. In this situation, 82% of Australian's have ensured they are financially covered5.
Shaun Williams, Norwich Union's general manager of group product distribution, said: "When assessing things in life, most people consider their, and their family's, good health take priority over ownership of material goods and assets. Yet, perversely, there are still more Australians with insurance policies for houses or cars, than privately owned life or income protection.
"Property insurance is widely understood and is an important part of looking after assets, however people also have to look at their livelihood and ensure they are protecting themselves and their families against the loss of the main breadwinner," said Shaun.
"When you buy a house the first thing most people do is get insurance protecting against fire and theft. But what about protecting your most important asset, your livelihood? For most people a house also means a mortgage - it's important to consider what would happen to your payments without your income.
"We all know about health issues, but we live in a society which believes "health problems aren't going to happen to me' - yet four out of five people are sufficiently concerned with burglary. As a society we are very selective about our 'risks'," said Shaun.
According to a new report released by the Heart Foundation, the baby boomer generation is now a prime target for one of Australia's major health issues, cardiovascular disease, currently affecting more than three million people6.
"Of course your superannuation may include some cover for life insurance. But it's important to think ahead and make sure you, and your family, are sufficiently covered against illness as well as death. By having adequate income protection insurance, you can concentrate on getting better rather than worrying about your financial situation," said Shaun.
In Australia, one in three families are affected by cardiovascular disease7 with more than 50,000 deaths in Australia each year - that's around 132 cases a day8. And, men, who tend to be the main bread-winners in many families, are twice as likely as women to be hospitalised for heart problems9.
"Thankfully for a lot of people, the risk of this disease, and many others, can be reduced through maintaining a healthy lifestyle. It also has a high survival rate, however the road to recovery may involve stopping work altogether or cutting down on work hours - and this will obviously mean changes to any family's financial situation," said Shaun.
"I encourage people to consider what they or their family would do without their salary. If the main breadwinner were unable to work, or died, would the family be able to pay bills or the mortgage?"
People interested in creating a financial plan incorporating life and income protection insurance should contact an Independent Financial Adviser.
-ends-
Shaun Williams is available for interview.
1 Australian Institute of Health and Welfare(AIHW) & Australasian Assocation of Cancer Registeries. Cancer in Australia 1997: Incidence and mortality data for 1997 and selected data for 1998 and 1999. AIHW cat. No CAN 10. Canberra: AIHW (Cancer Series no 15)
2 Australian Institute of Health and Welfare (AIHW) 1999. Heart, stroke and vascular diseases, Australian facts. AIHW cat No CVD 7. Canberra: AIHW and the heart Foundation of Australia (Cardiovascular Disease Series no 10)
3 Australian Bureau of Statistics, Crime and Safety, Australia, August 1999, Canberra
4 AAMI Media Release, Crime is down but we're more careless with security, May 2003, Melbourne
5 AAMI Media Release, Crime is down but we're more careless with security, May 2003, Melbourne
6 Heart Foundation Media Release, The silent and unrecognised killer stalking the baby boomer generation, April 2003, Sydney
7 National Heart Foundation of Australia, Australia's major health problem - Cardiovascular disease, November 2001, Canberra
8 Heart Foundation Media Release, The silent and unrecognised killer stalking the baby boomer generation, April 2003, Sydney
9 Australian Institute of Health and Welfare (AIHW) Media Releases, Heart attacks down 20 % in 6 years, September 2002, Canberra.
For further information, please contact:
Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632
Notes 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 worlds 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.