While it is important to grow your wealth it is also VERY important that you protect it. Life insurance is a necessity, not a luxury or something that should be done without. It is in times like these that the financial backup of life insurance is most needed – more than in the good times.
People earning income are under threat more than ever, and it’s vital to protect them.
Below are some alarming statistics –
- 50% of Industry Super Fund members are under insured by $100,000 for life insurance
- 37% of Industry Super Fund members believe life insurance is a low priority given other financial commitments.
- 74% of Industry Super Fund members are underinsured by $100,000 for Total and Permanent Disablement.
- 83% of Australians say they have insurance for their car, only 31% have income protection.
- Australians have a 1 on 3 chance of being diagnosed with cancer before age 75.
- Over 60% of Australians will be disabled for more than 1 month during their working life. 25% will be disabled for more than 3 months.
It is not easy thinking of the unexpected but it is so important to have that difficult conversation and have a family protection plan in place for you and your loved ones. Here are some questions to think about –
1. What would happen to you and your family if you were sick or injured and couldn’t work for 6 months? Or longer?
2. What would happen to your family if you or your partner were to die?
3. What would the financial implications be if you suffered a major trauma like cancer, stroke or heart attack?
4. What would happen if you became Totally and Permanently Disabled and could never work again? Are you fully protected? Would you have to sell your house?
There are 4 key types of personal insurance –
- Life insurance – This gives you a lump sum benefit in the event of death. A well designed life insurance policy will get your family prepared for the worst. You loved ones will benefit from cover that will help them pay the immediate expenses like unsettled hospital bills, funeral services, home mortgages, and children’s education expenses.
- Income Protection – Everyone is at risk of contracting an illness or disability at the time of his life. Having an income protection insurance will have you and your family covered in case you cannot work due to illness or disability.
- Total and Permanent Disability (TPD) – In case you cannot return to work because of total permanent disability, this type of insurance gives you a lump-sum payment that you can use to pay for medical bills, family expenses, and mortgages.
- Trauma Insurance – Also known as major medical trauma insurance, this insurance policy gives you a lump-sum payment in the event of heart attack, cancer, stroke, Alzheimer’s disease, kidney or other major organ failure, and lung disease among others.
Personal Insurance is the heart of every financial plan. You need to ensure you and your family are fully protected for life’s unexpected events. By working with a Certified Financial Planner you can have a customised plan developed and implemented.