Sickness or injury can strike any of us at any time. Being sick or injured is no fun but the impact can go way beyond you to affect your family and loved ones. Emotional distress can be heightened by the impact on your family’s finances.
Consider the following statistics:
- Cardiovascular disease kills one Australian every twelve minutes and prevents 1.4 million Australians from working and living a full life.
- Six in ten families with dependent children have insufficient insurance to cover expenses for more than one year if the main breadwinner couldn’t work.
- In the event of death or permanent disability, 80% of families would receive a payout that would last only five years.
- One in two Australian men and one in three Australian women will be diagnosed with some form of cancer before the age of 85.
- 66% of people diagnosed with cancer in Australia will still be alive five years after diagnosis.
But the financial effects of these statistics can be tempered by taking out relevant insurance cover.
- TPD Cover (Total & Permanent Disablement): pays a lump sum if you are totally and permanently disabled.
- Income Protection Cover: provides up to 75% of your monthly income if injury or illness prevents you from working.
- Recovery Money: pays a lump sum if you are diagnosed with one of the critical illnesses covered by your policy.
- Life Cover: pays a lump sum to your beneficiaries when you die.
Insurance obviously isn’t a physical cure, but it does take care of the emotional stress caused by increased financial pressures. Your risk insurances should be sufficient to discharge your mortgage and provide income for living expenses and extras such as school fees over the long term.
If you still haven’t gotten around to putting your personal insurance in place, or you need to review your cover to make sure it still meets your circumstances, contact your financial adviser on (07) 3040 4840. It’s better to be safe than sorry.
The advice on this site may not be suitable to you because it contains general information that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Please also refer to our general advice warning under contact us tab on our website. The article is based on information available at the time of writing only and therefore care should be taken as to the accuracy of the content.
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