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Insurance not just for 'sick people'

With a “strong under-insurance” problem in Australia, advisers should ensure their clients are financially prepared for disease and trauma with adequate insurance, according to an announcement from Macquarie Life.

Given the financial burden of disease, advisers shouldn’t be “frightened” of approaching a client’s life and trauma insurance, Dr Sally Phillips, head of underwriting and claims for Macquarie Life, told ifa.

Dr Phillips said advisers should take note of any increased risks their client might have and should suggest insurance products accordingly. Insurance is not just “for sick people”, she added – healthy clients should have some form of coverage.

“When you consider the total cost per heart attack on average is $281,000, it is clear that advisers need to educate their clients about the need to protect their wealth and the importance of considering life insurance as part of their financial planning needs,” Dr Phillips said.

“It’s not only from a health perspective that we need to consider this, we also need to think about how we’re looking after ourselves and our families from a financial point of view too,” she said.

Cancer is currently the leading cause of trauma claims from Macquarie Life, at 69 per cent. Heart attacks, coronary artery bypass surgery and angioplasties represent 14 per cent of trauma claims, making heart conditions the second-highest cause of claims.