New research commissioned by ING Australia has provided some tangible statistics regarding the experience of dependants who have lost a financial provider without having any insurance cover to assist in managing the situation.
One of the more significant results to come out of the study was the fact that one in three people were forced to move house as a result of financial pressure within two years of the loss.
“If you consider if you’ve lost your dad or your mum, or lost your partner, I would’ve thought one of the things you’d like to help you get through that period to keep you on your feet is having familiar surroundings,” ING Australia head of life product, marketing and reinsurance Gerard Kerr said.
The ING Australia report, titled “Picking up the Pieces”, found children in this situation suffered even more, with 64 per cent of respondents admitting their academic performance had suffered as a result.
Another 64 per cent of participants said their involvement in school activities had declined given the same situation.
Some children had to change school after losing a parent with no risk cover. Of this group, 78 per cent said their academic performance suffered, 75 per cent admitted to suffering from depression, anxiety or panic attacks, and 69 per cent were diagnosed with clinical depression.
“Some of the things are unavoidable, but certainly the fact a financial plan wasn’t in place compounded the situation,” Kerr said.
ING Australia is looking to use the statistics to help its advisers to have insurance conversations with their clients. They will also be using the statistics as the basis of a media campaign on insurance.
“Until we had done this research we never realised what the consequences of these situations were. This is dealing with the outcomes of not having a financial plan in place and previous research had never given us the level of understanding,” Kerr said.
The survey was performed online and collected responses from 1024 people.
