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In Australia, we all know the importance of insurance. We insure our cars, our homes, our possessions and our travel, but the thing we often overlook is the most valuable of all – ourselves!
Statistics show we’re far more likely to insure our homes than we are ourselves, but for every house that’s lost in a fire, 48 homes are lost in mortgage foreclosures because the owner is unable to earn a living. So doesn’t it make sense to have a plan B in case we fall sick or get injured?
Why we avoid income insurance
For many people, the idea of income insurance can seem somewhat unnecessary, and far too many of us share in the mentality that “it won’t happen to me”.
The reality is that we never know what the future might bring, and anything can happen. But how would your family survive if you were to suddenly lose your ability to earn an income?
Have a backup plan
When you’re sick or injured, the last thing you’re going to want to worry about is how you’re going to pay the bills. Income insurance provides you with a steady supply of cash to cover your expenses when you’re unable to work and lets you focus on getting better.
The best way to protect against injury or illness is to have a clearly laid out backup plan for your family’s finances in the event that something should happen to you that prevents you from providing for them.
For most Australians, savings and investment earnings won’t be enough to sustain their current lifestyles for long – and could ultimately leave them and their family members with nothing. For this reason, it makes good sense to start looking into income protection.
Protect your biggest asset
While we understand that your home, your car and your possessions are all important to you, you need to understand that you are your family’s biggest asset.
Although it’s impossible to mitigate all of the risks of everyday life, knowing your family will be protected no matter what happens will give you peace of mind and could really make a huge difference in their financial future.
There is a wide range of different income insurance options to best suit your family’s needs. Before signing up to a policy, make sure you work out exactly how much coverage you’ll need. Look at your daily living expenses like your mortgage repayments, grocery shopping and utility bills, as well as the cost of any credit card debt or other loan repayments. Always read the terms and conditions in full, and if you have any confusion, make sure you talk to an expert who can guide you through the process.
At Rising Tide, your personal life goals are important. We’re here to help you put together an effective financial plan to support you on your way to achieving your dreams.