Take it from me, insurance is worth every cent!
As a Financial Planner, I am privileged to work with all sorts of clients who are looking for ways to build and secure their wealth.
It’s been hugely rewarding to help them understand the myriad of options available and settle on the one that is just right for them.
Along the way I’ve found that I draw on my own experiences. One of my biggest lessons came after I moved out of renting and into the big and daunting world of home ownership.
I was focused on so many things, like making sure my rental property was clean as well as organising my finances, booking the moving truck and planning my new weekly budget.
Thankfully, I didn’t forget to revisit my insurance cover.
And I don’t mean the home insurance – that’s actually the easy bit! I mean looking at the different insurance options available to cover me in the hopefully very slim chance that I get injured, sick or die.
Not great topics to consider and that’s why most of us put it off.
But if there’s one thing I have learned from my own experience and those of my clients is that insurance, be it income protection, trauma, life, or total permanent disablement, is worth every cent.
All of us take our health and good fortune for granted until something goes wrong be it sickness, accident, redundancy, you name it.
Often one of the very first questions asked is how do I pay the bills?
If you take out insurance that assists you to cover these bills, then that’s one less thing you need to worry about and those around you won’t have to worry either.
Income Protection was my first main consideration. I’d taken out a mortgage and was comfortable with my repayments, but then worried about what would happen if something happened to me? Because I’m young, this was an insurance that really appealed to me because I could lock in the premiums now so that they would stay affordable over the years.
That then got me thinking about all the worse case scenarios and next thing I was considering was Life Insurance and Total Permanent Disablement. I don’t want to go through an event that means I’m unable to ever return to work and worry about having to move because I can’t afford the mortgage.
The last insurance I reviewed was my trauma insurance. Trauma Insurance pays you a lump sum for specific illnesses or injury like cancer, stroke or heart attack. This will ensure if I get a serious illness such as cancer I can afford medication that may not be on the PBS and I can keep the bank off my back as there will be enough to cover my mortgage repayments for a couple of years.
So in summary, to know how much insurance you need can be really hard to assess and this is where we can help.
We make a detailed assessment of your situation before making recommendations on how much insurance you should have to protect you and your family. It is also important that not all insurance covers are created equal and we can guide you through the terms and conditions of the policies that we recommend.
If you are worried about affordability we can work with you to reduce the impact of insurance premiums on your cash flow such as funding some of it through super. Depending on your situation, it is possible to get a comprehensive insurance cover for as little as the cost of a coffee a day.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular circumstances and needs. Financial planning services are provided by Eastwoods Wealth Management Pty Ltd ABN 17 008 167 002 / AFSL 237853 trading as Beyond Bank Australia Wealth Management. Eastwoods Wealth Management Pty Ltd is a subsidiary of Community CPS Australia Ltd ABN 15 087 651 143 / AFSL 237 856 trading as Beyond Bank Australia.