Are you looking after yourself?

It’s an amazing fact that many people look after their belongings better than their own lives. Most people wouldn’t think twice about insuring a car, but what about insuring a life? It’s not a good idea to focus on life’s downers but being prepared for them will make all the difference.

Could this be you?

You and your partner are in your mid-50s and both work full time. The mortgage is under control. If you continue to save at your current rate you expect that you will be able to retire with a comfortable income at age 60. Life is rosy until you are involved in a serious car accident and are unable to work for six months.

While you’re recovering, your partner takes three months off work to care for you. Then it takes another two years of working part time before you’re finally capable of resuming full-time work. Your comfortable retirement has been delayed indefinitely.

If this happened to you, would you be able to cope financially during this period of illness? How would your lifestyle and retirement plans be affected?

Peace of mind

After an agreed waiting period, income protection insurance can pay an income for a short period or until you are aged 65 (depending on your needs and policy). That income will be a maximum of 75% of your current gross income.

Here’s another scenario…

You are the sole breadwinner with young children and a large mortgage. You get an aggressive cancer that is terminal. You have both life insurance and trauma cover.

Cancer is usually a claimable condition for trauma insurance so when your cancer is diagnosed, you receive a lump sum payment. Your life insurance policy is within your superannuation fund. When you die your children and spouse are able to use the life insurance and superannuation money for allocated pensions for each of them. They will be able to continue living in their home and fulfil the plans that you had for them as they will have the financial support necessary.