What would happen if you could no longer work?

It has been asked “If you had a machine in your living room that gave you $80,000 a year, you would insure it right?”

Most people think their biggest asset is their home, but in actual fact the biggest asset is your ability to earn an income.

Most of us have car insurance, medical insurance, and home and contents insurance.  Strangely, there seems to be an ‘it won’t happen to me’ attitude when it comes to insuring ourselves and our ability to earn an income. This is not very responsible, especially if you have a family.

Did you know you have the option to pay for personal insurance through your superannuation fund?

Having a back-up plan if disaster does strike is a pretty good way of securing your future, or that of your family’s, in a worst-case scenario.

There are four main types of personal insurance, with probably the most important being income protection. What’s right for a retail employee is not necessarily right for someone who works in a mine. How much you need to be covered for depends on your occupation, your level of income and a range of other factors.

Without a reliable income our lifestyles are placed in a precarious position.  Our relationships may become strained if we are unable to meet our family’s needs.

Why take the chance that everything will be okay? Is it really worth the risk?

Imagine an instance where you have an accident, which leaves you unable to work for several months. Then imagine not being able to pay the mortgage, or other household bills, as they pile up.

Buying a house entails a lot of hidden costs, including stamp duty and legal fees. What would happen if you were forced into selling your home because you were unable to earn an income? Not only have you wasted those initial outlays, you’re then stuck with the costs associated with selling your house and the stress of having to sell your family home.

It’s scary stuff and not nice to think about. That’s the problem – people don’t like thinking about all the things that can go wrong!                                                                                                                This is where a Financial Adviser can help. It’s our job to make sure you are protected, if the worst case scenario should happen.

There are also ways to pay for your personal insurance without it affecting your day-to-day cash flow.

You can insure for income, death and disability without having to pay out of your own pocket.

Other personal insurances include total and permanent disability insurance, critical illness insurance and life insurance.  These ensures your family, and loved ones, are looked after in the event of your death (or if diagnosed with a terminal illness). This sort of cover is usually a lump sum payout.

One of the most frequent excuses for not taking out personal insurance is the cost. There is a belief that even if you take out an insurance policy, you won’t actually get paid if you have an accident. However, the top insurers pride themselves on the fact that they pay out 100’s of millions of dollars every year.

You may have noticed ads on TV for personal insurance and think “we can’t afford it”. The problem with TV advertised personal insurance is they are usually more expensive and don’t require medicals.  Our clients would tell you that personal insurance is more affordable than you think.

We have access to software that can compare the entire market, helping you to make the best decision for you and your family.

Sadly, it’s a fact of life that … well … life happens, accidents happen, deaths happen … and it honestly doesn’t make sense to sit back and take your chances.

Personal insurance not only offers peace of mind it also provides a contingency plan for those bad times.

If you would like to learn which personal insurance is best for you, contact us today!