Insurance. Just the word itself can make people switch off. It’s one of those topics that feels distant, dull, and perhaps even a little uncomfortable to think about. We tend to associate it with paperwork, premiums, and problems we hope will never happen. As a result, many of us quietly disengage from the concept altogether.
But here’s the truth: insurance isn’t about the “what ifs” — it’s about protecting the “who matters.” It’s about safeguarding your family, your income, your lifestyle, and your peace of mind when life takes an unexpected turn.
The uncomfortable reality is that too many Australians remain either unprotected or underinsured, leaving themselves and their loved ones financially exposed at the worst possible moments.
The Silent Risk of Underinsurance
According to research from the Financial Services Council, a staggering number of Australians are underinsured — particularly when it comes to life and income protection cover. Many households would struggle to maintain their standard of living if the primary earner were to pass away, fall seriously ill, or become unable to work.
This issue becomes especially pronounced for people in their 40s and 50s — those in their mid-career or pre-retirement years. By this stage of life, financial responsibilities are at their peak: mortgages, children’s education, caring for ageing parents, and preparing for retirement. Yet, paradoxically, it’s often the time when people’s insurance cover is most out of date or insufficient.
It’s not unusual for someone to still be relying on the default life cover within their superannuation fund — a level of protection that may only represent a fraction of what their family would actually need.
Why We Avoid the Conversation
So why do we avoid talking about insurance? In part, it’s psychological. Conversations about illness, disability, or death are inherently uncomfortable. It’s far easier to focus on the present — on paying the bills, saving for holidays, or making that next home upgrade.
There’s also a perception that insurance is complicated or expensive, and that dealing with it requires too much time or emotional energy. But the cost of not having the right cover can be devastating — not just financially, but emotionally.
Financial advisers often say one of the hardest parts of their job is delivering bad news — telling a client or their family that they are underinsured after tragedy strikes. Conversely, one of the most rewarding moments in their career is when they can tell a grieving spouse, “You’re going to be okay. The cover is in place.”
That’s the difference proper planning makes. It turns heartbreak into hope.
The Human Side of Protection
Insurance, at its core, is about compassion — about caring enough to plan for the people you love. When structured correctly, it ensures that your family isn’t burdened by debt or forced to make difficult choices in a time of loss. It provides breathing space — the ability to focus on healing, not finances.
It also brings enormous peace of mind. Knowing you’re adequately protected means you can live more freely, without the constant worry of “what happens if?” hanging over you. That sense of security is priceless.
The Role of Financial Advice
If it’s been a while since you last reviewed your insurance, now is the time. Policies that were appropriate five or ten years ago may no longer suit your circumstances. Children grow up, debts change, incomes rise — and your cover should evolve with you.
A professional financial adviser can assess your risks, review your current policies, and identify any gaps in protection. They’ll help ensure your cover is aligned with your life stage, needs, and budget.
Many advisers describe their role as being part coach, part counsellor, and part guardian — helping clients navigate some of the most challenging moments of their lives. Having someone in your corner who truly understands your financial position and long-term goals can make all the difference.
A Gentle Call to Action
If you’ve lost touch with your financial adviser, consider this your reminder to reconnect. Reach out and schedule a risk assessment. It’s a simple step that could have a profound impact.
Insurance may never be an exciting topic — and that’s okay. It’s not meant to be. But it is one of the most important foundations of financial wellbeing. It’s the quiet safety net that supports families through the loudest storms.
So don’t dismiss it. Don’t leave it for “later.” Because when life changes — and it inevitably does — the comfort of knowing you’re protected is something money alone can’t buy.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
