The other day while I was having a reshuffle of some paperwork on my desk, I came across an article showing a breakdown on what causes mortgage stress.  With yo-yoing interest rates, mortgage stress is the flavour of the month. 

Before your eyes glaze over with boredom, what do you think is the main cause of mortgage stress?  Most people are quick to point their finger at the banks, people’s lifestyles and the economy in general.  But a report from Genworth Financial, one of Australia’s largest mortgage insurers, found that while rising mortgage repayments did put pressure on the household budget, generally it was a significant lifestyle event that acted as a trigger for a borrower’s inability to meet their debts.

Their research found illness or injury was the biggest cause of hardship, representing 38% of hardship applications in comparison with just 2% of applications because of over commitment to a mortgage.

These interesting statistics lead me to my next favourite topic, underinsurance, where you don’t have enough insurance to protect yourself, your home or your family if a catastrophic event occurs.    I have already written about the massive problem of underinsurance in my earlier blog Life Cover – Protect your family from life’s surprises so I won’t revisit the figures in this article.  But if you’re curious, have look at my blog as it has some interesting figures about life insurance, or rather the lack of, life insurance in Australia

In any event the article did give me cause to ponder, once again, on why people aren’t taking out life insurance.  It might be that people are not sure how personal insurances work or believe it is out of their budget.   Maybe people feel intimidated approaching an insurance adviser for advice.

If you think you’re underinsured, the biggest favour you can do for yourself and your family is at least take the first step and contact your financial planner or insurance adviser to allow them to assess your situation.   Don’t be shy – whatever your budget, whatever your situation, there is an insurance plan out there that suits you and your family.    

If you’re still not convinced that you need insurance to protect your families, consider this.  Life insurance isn’t about you, it’s about the people you leave behind who have to pick up the financial pieces after you’re gone.  Give us a call on 1300 766 323.

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

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