Why does insurance matter? The importance of insurance

If you’ve ever wondered about the value of insurance, find out about AMP’s approach to claims and what we paid in 2017.

If you pay your insurance premiums and never get anything in return – other than the peace of mind of knowing you’re protected – you’re one of the lucky ones, blessed by good health and wellbeing.

But for those that find themselves having to make a claim, it’s good to know that AMP is there when it matters most.

Claims paid

Our latest claims paid statistics show that in 2017, we helped 11,705 clients by paying $1.112 billion in insurance claims – or more than $3 million every day1.

Grouped by the four main types of insurance, this equated to:

  • $425.1 million in life insurance and terminal illness claims, which pays a lump sum upon death or the diagnosis of a terminal illness.
  • $327.3 million in income protection claims, which provides a replacement income of up to 75% of your regular income if you can’t work due to illness or injury.
  • $251.3 million in total and permanent disability (TPD) claims, which pays a lump sum if you become disabled and are unable to work again.
  • $107.9 million in trauma claims, which provides a lump-sum payment if you're diagnosed with a specified medical condition – such as cancer or a stroke – undergo a specified medical procedure, or are seriously injured.

Beyond claims payments

While financial assistance is a big help, what most people want is for their lives to return to normal, the way they were before the claim occurred. While this isn’t always possible, in 2014 we began to transform our claims process and guiding philosophy, to focus on helping our customers back to their everyday lives as soon as is practical.

Beyond paying claims, help might involve rehabilitation, working with employers on a return to work program, or the offer of domestic services to help our customers focus on their health and recovery from illness.

Some of the more creative ways we’ve helped customers range from using equine – or horse – therapy to rebuild confidence following a psychological injury, to employing an iPad robot to help a customer expand their business while working from home following surgery.  

How we can help you

To make sure you’re protected should the worst happen, it’s important to regularly review your insurance cover as your circumstances change so that you’re not under – or over – insured.

Knowing what level of cover you require can be tricky, so it’s worth thinking about a few things first, such as to what extent you and any loved ones rely on your income, how costs stemming from an injury, illness or death might be covered and how existing debts might be paid off.

Our online insurance needs calculator can help you work out what type and how much insurance you may need, or for further guidance, speak to your adviser. If you need help finding an adviser, use our online search function or call us on 131 267.

1 AMP, claims paid brochure, 2017.

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Any advice in this page is general in nature and is provided by AMP Life Limited ABN 84 079 300 379. The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice. Although the information in this article is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decisions. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.