Are you guilty of underestimating?

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When it comes to predicting the future, it turns out that most of us are pretty bad at it. Not a surprise really, but here are a few facts we’ve collected over the year that will highlight just how far off our thinking can be…

Underestimating the likelihood of illness or injury

  • 1 in 3 men and 1 in 4 women will be diagnosed with cancer by age 75
  • Cardiovascular disease (including heart attack and stroke) is responsible for 1 death every 12 minutes
  • 1 in 6 women and 1 in 8 men will experience depression during their lifetime
  • Kidney disease kills more people each year than breast cancer, prostate cancer or road traffic accidents

Underestimating the cost of treatment

  • Over 128,000 cardiac angiograms are performed in Australia every year; the cost of an angiogram is approx. $13,247
  • Individuals spend around $1,350 year in out-of-pocket expenses for mental health conditions and lose an average of 38 working days annually
  • 1 in 3 Aussies with cancer will have higher than expected out-of-pocket expenses
  • More than 90% of cancer patients who reported financial difficulties — such as problems paying for food or utilities — did not have these financial problems before their diagnosis

Underestimating the cost of being a carer

  • 21% of carers reported a decrease in their income because of their caring role
  • 24% carers said they incurred extra expenses
  • 31% carers said they had difficulty meeting everyday living costs

Underestimating our worth

  • Women are less likely to have life insurance compared with men
  • Women perform ¾ of all unpaid work in Australia, such as childcare
  • 58% of Aussies relying on 2 incomes say they wouldn’t be able to maintain their existing lifestyle for any longer than 2 years should the secondary income earner be unable to work
  • Just 4% of casual and part-time workers have Trauma cover

Underestimating how much super we need in retirement

  • Superannuation is designed to last 20 to 22 years – on average, about 50% of retirees will need their superannuation to last longer
  • Over half of retirees worry they will outlive their savings
  • 2% retirees regret not contributing more to their retirement savings
  • Cancer patients over 50 may struggle to return to work after time off for treatment, and have reduced opportunity to recover from the effects of large, unexpected, out-of-pocket costs combined with long periods of lost wages

Underestimating the value of life insurance

  • The average amount raised by Aussies on GoFundMe is $4,600
  • Banks do not lend to people with chronic or terminal health conditions because they are too high a risk of not paying back the loan
  • Last year, Australia’s life insurers paid over 90% of claims, representing more than $7.5 billion
  • Claims made by clients with an adviser are more likely to be paid than those without an advice relationship

Isn’t it time you stopped underestimating your value and put a plan in place?

References:

  1. Zurich Cost of Care Whitepaper, 2018
  2. https://www.abc.net.au/news/2019-08-15/financial-cost-of-cancer-leaves-patients-in-poverty/11374356
  3. https://www.nobleoak.com.au/wp-content/uploads/2019/02/NOL19-MEDIA-RELEASE-WOMEN-LESS-LIKELY-TO-HAVE-LIFE-INSURANCE-FINAL.pdf
  4. https://www.metlife.com.au/about-us/newsroom/2019/february/Families-unprepared-for-loss-of-second-income/
  5. https://www.intheblack.com/articles/2019/08/01/how-much-super-do-you-need
  6. https://www.challenger.com.au/-/media/Challenger/Documents/Media-releases/Infographic-feeling-financially-comfortable.pdf?la=en
  7. https://www.dailytelegraph.com.au/moneysaverhq/crowdfunding-wont-save-your-finances-so-protect-yourself/news-story/5984f85b04feb7d6a1cfa1060c223a0d
  8. https://www.insurancewatch.com.au/insurance-claims-statistics.html
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About the Author:

Tatiana has over 15 years experience within Financial Services with the last 7 years focussed on Life Risk. Tatiana has held Senior roles with a number of organisations such as Macquarie, AMP and OnePath prior to starting Monarch Advisory Group. Tatiana holds an Advanced Diploma of Financial Services and is completing the CFP (Certified Financial Planner) through the FPA (Financial Planning Association). Tatiana is also a member of the FPA, which is the highest professional body for the Financial Planning industry. Tatiana is very approachable and passionate about ensuring her friends, family and clients are properly protected in the unfortunate event that something goes wrong.

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