Do you really need personal insurance?
Do you really need personal insurance? Ask yourself the following questions-
- Would your family be able to survive without your income, if you died?
- If you had a bad accident, and would not be able to work again, how would your family pay the bills?
- Would you be able to afford care for yourself if you had a bad accident?
Don’t think, just because you don’t have children or a mortgage, doesn’t mean you don’t need life insurance. There are insurances, such as Total Permanent Disablement, Trauma and Income Protection insurance that you need to be considering much sooner in life, such as when you secure a full time job. You are your own greatest asset.
And yes, I can hear you say – but I have cover through my superannuation fund. Okay, you have cover through your superannuation fund – but, do you know how far it will go? And, don’t think all insurance contracts provide the same level of cover. Some contracts encompass weaker policy definitions, which make claiming on the policy more difficult. But, don’t see this as scary, see it as an opportunity to have a look at what you have and make sure you have what you need. Really, how far is $200,000 going to go when you are age 40? Let’s see, say your living expenses are $30,000 pa, so that’s just over 6 years. Then what? How are you going to fund your expenses then?
What’s that? – Your healthy and it won’t happen to you? Let’s hope not, but statistics show that for cancer alone, men have a 1 in 3 chance of suffering illness and women a 1 in 4 before the age of 75, with an average of 131 deaths every day.[i] That’s only taking cancer into consideration.
Oh, and yes, life insurers do pay claims. One life insurer paid $94 m[ii], alone, in Trauma claims in 2017. In total, they paid over $1 billion in claims for 2017.
Please, question your priorities, and consider how much your income means to you. Don’t wait until it’s too late. Have the discussion now. It really is worth considering.
The Money Edge | Bundaberg