Life Insurance

Some of The Risks of Driving in Australia (And Why You May Want to Consider Life Insurance to Prepare for the Unexpected)

21 May 2020

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

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The current situation teaches us that risks can come from the most unpredictable places. When you least expect it, life can throw you for a loop and change everything.

While we’re all dealing with the unexpected right now, we want you to cast your mind to another potential risk.

And this one could happen every time that you drive your car.

From the moment that you step into your car, you’re putting yourself at risk. And while you may be a safe driver, does the same apply to everybody who shares the road with you? Can you really be certain that everybody you come across while driving is as good behind the wheel as you try to be?

The sad fact is that accidents happen on the road. And one of these accidents could lead to consequences that affect your entire family. You may pass away, leaving your family struggling to deal with the aftermath.

But even if you survive, you may sustain a serious injury that leaves you disabled and limits your ability to ever work again. This would also have a serious effect o the rest of your family.

We know what you’re thinking…

‘That will never happen to me!”

But the truth is that the unexpected is more common than you may believe.

How Big of a Risk Are You Taking When You Drive?

In 2018 alone, 1,146 people lost their lives in road traffic accidents in Australia. That amounts to three deaths per day due to car accidents. Thankfully, the number has gone down since the 1980s, thanks to a concerted effort to improve road safety.

In 1987, Australia experienced 17 road traffic accident deaths per 100,000. That number now stands at about 4.6 per 100,000.

Furthermore, consider the risk of injury during such an accident. Though the death rate has fallen in recent years, the injury rate from car accidents is on the rise. It increased by 8.7% between 2006 and 2013 alone.

We don’t wish to be alarmists here. These numbers are still very low when compared to the number of people on the roads. But the point we want to make is that there is a risk. And if you’re unfortunate enough to get involved in an accident, there are very real consequences to consider.

There are always risk factors involved in driving. Here are the five key issues that lead to a significant number of road accidents and injuries:

Speeding
Driving while intoxicated
Distractions
Tiredness
Failure to wear a seatbelt

Now, you may tell yourself that none of these issues apply to you. You never speed and you always wear a seatbelt. And you don’t drive at all if you’re under the influence of anything that could impede your ability to do so.

Unfortunately, you can’t guarantee that this is true for everybody else on the road. Even if you do everything right, the unexpected may still occur because of other people’s actions.

This is why Life Insurance is an important consideration. And to emphasise that point, here are four reasons to consider Life Insurance, Income Protection or Total and Permanent Disability insurance today.

Reason #1 – An Accident Could Happen at Any Time

We always tell ourselves “It won’t happen to me,” …until it does.

As we’ve shown above, accidents can happen at any time. And the real kicker is that you may not even be responsible for the accident occurring.

However, we’ve also only presented an outline of the issue here. You may not get involved in a road traffic accident. But what about accidents at work or in the home? What if you’re walking along the street and a car hits you?

The point is that accidents tend to come unexpectedly. The question you may want to ask yourself is – “Am I sufficiently covered if something were to happen to me?”

Reason #2 – You Engage in Extreme Hobbies/Activities

An activity that might not seem extreme to you could still increase the possibility of you having an accident.

When we think of extreme, we think of activities like bungee jumping or skydiving. But even more sedate activities, such as scuba diving or horseback riding, present a risk. Any hobby or sport that requires you to be in a situation where serious accidents are more likely to occur could be considered an extreme activity.

You may want to consider Life Insurance to help protect your loved ones financially if the worst happens. Speaking of which…

Reason #3 – Insurance Helps Protect Your Loved Ones

Imagine that you’re involved in an accident that takes your life. Or you survive an accident, but your ability to earn a living is impacted.

Either way, your loved ones could suffer almost as much as you do.

Life Insurance isn’t about putting a dollar value on your life. It’s about providing peace of mind in term of the financial needs of the people you care about the most. It’s a way to help minimise the risk that your family will lose their quality of life if you’re not able to provide for them anymore.

Reason #4 – Protecting Your Family From Debt

According to the ABS (Australian Bureau of Statistics), the average Australian household debt stood at $168,600 in 2016. As a nation, our total household debt stands at about 120% of our national GDP.

It’s likely that you have debts of your own to contend with. Do you really want to leave those debts behind for your family to take care of if you could not work again and earn an income, or worse still, you were no longer around?

The correct Life Insurance products can help your loved ones manage and resolve any debts that you have. This means they could start again with a clean slate, rather than getting weighed down by financial burdens.

Expect the Unexpected

…Because the unexpected could destroy in an instant the life that you’ve built with your family.

With the right Life Insurance arrangements, you can create a safety net for you and your loved ones. You can make sure that they’ll be taken care of if an accident claims your life or leaves you disabled and unable to work.

As we’ve shown here, road accidents occur regularly. And that’s just one type of the many unexpected situations that could befall you.

With that in mind, there’s a key question to ask…

To insure or not to insure?

That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.