Plum addresses underinsurance with online calculator for members

17 August 2007

Plum Financial Services Limited (Plum) has launched an interactive insurance gap calculator for the benefit of members, helping target Australia's underinsurance problem.

Plum's calculator is an independent tool, highlighting a member's insurance position to help them better understand any potential gap, and is not linked to any insurance products.

According to Plum's Managing Director, Mike Fitzsimons, as Australia's population ages, insurance adequacy is increasingly important, with industry experts telling us many people are inadequately or totally uninsured (see ref 1 over page).

'Insurance can help a person and their family in many situations, including in the event of injury, critical illness or permanent disability. Insurance cover can assist in easing the pain when a member is limited or prevented from working, or if they pass away unexpectedly. Insurance provides for the loved ones left behind,' Mr Fitzsimons said.

'These factors are all major impacts on a person's life and for that reason it is essential to ensure that insurance is adequate to cover a person when an unexpected event happens.'

Mr Fitzsimons said corporate organisations should also be aware of this, with Rice Warner Actuaries recently reporting that choice of fund could also lead to some employees being totally uninsured.

'Insurance is also a major issue for corporate entities as well as individuals, as no employer wants to see their employees injured or die, with no insurance,' Mr Fitzsimons commented.

'I would urge every individual to double check if they have insurance under their super fund or by virtue of their employer and the level of cover. This calculator can help our members ascertain if they are adequately insured, or if they need to take action to increase their cover.'

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