Asteron Life has launched its Adviser support Package to help advisers better engage with clients on policy lapse issues and encourage clients to hold onto insurance through their 40s.
Research from the insurer found that Australians in their 40s make more life insurance claims than any other age group but too many are letting their policies lapse just before the average claim age.
“The most alarming finding was that the average lapse on a life insurance policy happens at age 44, and the average claim is made around the age of 49, showing that Australians are letting go of their insurance just a few years before they might need it,” Asteron Life’s executive manager Mark Vilo said.
“This exposes them to a major financial gap in the event of a serious illness, accident or their own death.”
“Overlaying these pressures is the fact that in the 40s people also start developing chronic diseases.”
The interactive websites gives adviser’s information to help educate their clients in their 40s in the importance of having insurance cover appropriate with their life stage.
Mr Vilo said this education is “the key to addressing the insurance protection gap” and that advisers were an important step in the process.
“71 per cent of lapses are drive by affordability pressures, so it’s essential advisers have the tools and strategies to help explain the financial exposure of lapsing cover,” Mr Vilo said.
“It’s important that advisers routinely discuss with their clients the importance of retaining their life cover, to prevent financial exposure in the event of a major trauma event in life.”
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