Yet when it comes to protecting against the financial impact of a death of yourself of your partner, people are often far less compelled to act yet the financial implications are often quite a lot more than hitting a porsche.
I regularly see couples with big mortgages taking very big risks on having insufficient life insurance coverage.
Take an average Sydney family in their 30's, one or both of which are professionals. There is very a good chance that they have only recently managed to get into the property market and have a mortgage around $1,000,000. Both are earning an income and using it to service their mortgage. If they have one or more children then they probably have very little spare salary, with all income going to either service the mortgage or raise their kids. Putting kids through an average private school will cost around $125,000 per child.
Now, should something happen to either of the parents, then the surviving spouse would like to be covered. They would like to pay off the mortgage in full ($1m), have funds to put the two kids through private schools ($250k), clear out short term debt and car loans (say $50k) and have some form of salary help to maintain their standard of living for a few years until they find another partner (say $50k/year for 4 years). This adds up to cover of $1.5m. They probably have $150k saved in their super and maybe another $150k in default life insurance provided by their super fund. However, they are $1.2m short in this case.
They can get this $1.2m covered for not much more than the cost of third party insurance for their car, yet I commonly hear the "I will get around to it eventually" response when broached with the costs of appropriate levels of Life and TPD insurance for them.
The impact of a death or a total permanent disability can be devastating on the surviving members of a young family, especially with the high rates of borrowings in today's economic climate.
Hitting a Porsche may cost you $30,000 but losing a spouse will cost a lot more. You wouldn't drive your car without insurance, don't do the same thing in life without adequate life insurance.