Some things in life affect us all equally—regardless of who we are
These things aren't personal - actually, they're just statistical.
These numbers and what they warn us about are the same for everyone without discrimination.
In the perfect world, everyone will have enough money to be able to purchase the right amount of personal insurance they need to make sure every part of their life is protected from the statistical realities we all face - we call these statistical risks The Numbers of Life.
By we don't live in the perfect world so most of us have to carefully choose where our greatest risks are and use a strategy to cover what's most important to us and what's our greatest risk.
How much life insurance is really enough?
This important question is answered differently for each individual and their family?
This is why you'd use the expertise of a Financial Adviser like Sapience to help you learn more about your options and what strategy might work best for you.
- Watch our explainer video case study here about How Much Insurance is Enough?
So what are the statistical odds of you needing to claim on your personal insurance?
- 1 in 3 chance of needing to claim on your Critical Illness insurance
- 1 in 4 chance of needing to claim on your Income Protection insurance
- 1 in 10 chance of needing to claim on your Life insurance
- 1 in 20 chance of needing to claim on your Total & Permanent Disability insurance (TPD)
Pro Tip: If you have a family history of prostate cancer or breast cancer, be proactive and establish high-quality medical Crisis/Trauma Recovery insurance that specifically provides a level of financial protection for those known medical issues.
A personal story
Some things in life things aren't personal - they're actually just statistical.
The Numbers of Life happened to me, and I never saw them coming.
One day I was enjoying life, work and good health, the next I was having urgent surgery. Little did I know that the terrible day that took me by complete surprise was to later trigger a domino effect that took my health, my legal career and my ability to speak for the next two years.
The hardest part was not the lengthy recovery but later finding out that was a solution that could have protected me and those who relied upon me, from the devastating financial effects of this medical trauma — but nobody warned me. It's time to know your risk. Drew Browne - Sapience Financial
Frequently Asked Questions: The Numbers of Life
What are the statistical odds of needing to make an insurance claim?
We call these "The Numbers of Life." They aren't personal; they are simply statistical realities that affect everyone equally. The odds are higher than most people realize:
- 1 in 3 chance of claiming on Critical Illness insurance.
- 1 in 4 chance of claiming on Income Protection.
- 1 in 10 chance of claiming on Life Insurance.
- 1 in 20 chance of claiming on Total & Permanent Disability (TPD).
Why should I bother with insurance if I’m healthy now?
As Drew Browne's personal story illustrates, the "Numbers of Life" often arrive without warning. One day you are healthy; the next, an unexpected surgery or medical trauma can trigger a domino effect that takes your health, your career, and your income. Insurance is the strategy that stops that domino effect from ruining your family's financial future.
What if I have a family history of specific illnesses?
If you have a known family history of conditions like breast or prostate cancer, you must be proactive. Establishing high-quality Medical Crisis/Trauma Recovery insurance early ensures you have financial protection for those specific risks before they become "pre-existing conditions" that are harder to insure.
How much insurance is actually enough?
There is no one-size-fits-all answer. The "right" amount depends on your debts, your family's lifestyle needs, and your long-term financial goals. Using the expertise of a Financial Adviser helps you map out these statistical risks against your personal situation to ensure you aren't paying for what you don't need, but are fully covered for what you do.
Data Source
Trauma Calculations based upon Cologne Re Trauma Table 1998
Life Calculations based upon Australian Life Tables 2004-2006, Australian Bureau Statistics
Income Calculations based upon Institute of Actuaries of Australian Industry Disability Tables IAD89-93, Occ Class B
