Australian Life Insurance Industry – A Social Plan
The Australian insurance industry and most particularly the life insurance industry has been providing the security and a safe haven to millions in the continent. Moreover, this is not a recent phenomenon at all. Some of the companies have clocked over 175 years and have gained credibility and trust from many individuals and corporate. Where the economic situation of the world is so bleak and financial mood has been extremely volatile, this comes as a cheer for Australians. Sound policy covers include many options for life insurance, health insurance and general insurance. Of course there may be many variants, but these three forms the basis of what one must invest in.
Protection is provided to those who want to hedge their risks from unaccounted financial losses. It is a must in personal financial planning, especially life insurance in the case of old people. This gives the family; an opportunity to bear the brunt increase an earning member is lost. More than the obvious benefit of money, the situation can be alleviated by knowing that the insurance cover will take care. This is much needed when a loved one suddenly falls prey to death.
In many ways, this industry hinges on social initiative since many are protected by the policies. Life insurance policies are able to provide the Australian community, protection against risk of death, trauma and disabilities. This well may be called a social function provided by insurers as financial resources are provided to policy beneficiaries, namely, dependants, family and the individual. If an individual is suffering from long term illness, has an accident or dies, this policy is bound to take sufficient care of the dependants. If the individual is not covered, it becomes an immense problem for the dependants.
Some of these life insurance policies also cover for trauma, income protection, sickness and disability. This is a big boon as then one may not have to take health insurance. Though, they are different in nature, one must read the fine print and see which one is more comprehensive. The wider the range, better the product is.