Heading for cover

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Insurance is like carrying an umbrella — it can’t stop the rain, but it can provide much needed financial protection during life’s storms.

Most of us don’t understand the risks but did you know 50,000 Australians have heart attacks every year. One third of women and a quarter of all men will suffer cancer at some stage in their lifetime – over 60 per cent of whom will live for longer than five years after diagnosis. Half of all men and a third of women will be diagnosed with cancer before the age of 85.

Pretty scary statistics aren’t they? Would you and your family be able to survive financially if something were to happen to you? Having the right level of insurance cover in place can give you peace of mind at a time when money should be the last thing on your mind. It can enable you to continue to make mortgage, rent and other payments if you were to fall seriously ill or die.

No one likes to talk about death, but what would you prefer? To ignore it, hope it goes away and then leave your family to pick up the financial pieces? Or rest easy, knowing there’s one thing you can control; your family’s financial security. Having adequate protection in place can mean you can focus on what’s really important, your emotional and physical recovery.

So ask yourself, “If something happened to me and I could no longer work, how can I afford to pay for things like private medical care, mortgage or rent, other bills like school fees and child care?”

Isn’t it odd that while many Australians insure their car, home and contents, their most valuable asset is often overlooked. You.  Your ability to earn income is your greatest asset. A consistent income stream is the lifeblood of most families and businesses. Insuring your income should you be unable to work due to illness or injury probably costs a lot less than you think. It can pay up to 75 per cent of your monthly income. Structured correctly, it allows you to be as comfortable as possible financially without your regular income.

Life insurance provides protection for your family should the unexpected happen to you. By providing your beneficiaries with a lump sum payment, you can help ensure that your family can maintain their lifestyle and keep their assets when they can no longer rely on your income. It may also pay benefits if you are diagnosed with a terminal illness. It’s important for people of all ages, especially if you have others relying on your financial support or you have large debts such as a mortgage.

Sanjiv is a sales manager supporting his wife and two young children. While driving, he was hit and injured his back. He needed extensive rehabilitation therapy and was unable to work for 36 months. As the primary income earner, his family relied on his income to pay the bills and the mortgage. Without his income, they would have quickly used up all their savings they’d struggled to put aside for their children’s future. Fortunately Sanjiv had income protection in place. After his initial waiting period, the insurance cover paid him every month until he was able to return to work.  It was enough to meet their expenses, the mortgage and keep the family home. His wife could help him with his rehabilitation without the burden of worrying about the bills.

So how many months would you and your family last financially if something serious were to happen? How long would it be until you had to start selling assets?

Did you know 95 per cent of Australian families don’t have enough cover?  Make a decision to be part of the 5 per cent that have financial peace of mind and seek advice from an expert today. A financial planner can help you find the right strategy to ensure all things are covered.

Discloser :
“Ali Mohammed and Planet Insurance & Financial Planning Pty Ltd ABN 99 137 467 362 are Authorised Representatives of AMP Financial Planning Pty Ltd, AFS Licence No. 232706.  The information in this editorial is not based on your personal objectives, financial situation and needs. It’s important that consider your own personal circumstances before you make any decisions.”