When it comes to insuring our car and homes, we all see it as something that despite hoping we never have to make a claim, see it as something we must have to protect our assets, in fact if a friend ours didn’t have it, we would howl them down as being irresponsible.

However when it comes to protecting our most important assets, ourselves, far too many Australians do not have adequate insurance if any at all.

I think people are sceptical when you tell them they need life insurance or income protection insurance. But I ask one simple question, if you or your partner was unable to work for 6 months, how would you pay your rent or mortgage. Would you have enough to buy your groceries and pay your electricity, your phone bill. How long would your savings last. What if you or your partner were out of action even longer. In most cases families will at some point be financially ruined if they lose an income for an extended period.

The financial picture is just as bleak if you or your partner passes away. Once we buy a house together or start a family, we come financially dependent on each other, we can’t afford our lifestyles without each other.

I think if we all consider the above, most of us will acknowledge that we need income protection and life insurance. Yet statistics tell me that most do not have these insurances. The question is why not. I think people don’t like to contemplate these things, which understandable, but ignoring them does not make these things any less likely to occur. The other is affordability; many people say they can’t afford it.

One of my colleagues is very blunt on the question of affordability. He likes to identify a small luxury of the client, take away coffees, beer, make up and alike. He tells the client that they are putting coffee (or whatever luxury is relevant) ahead of their family. Personally I’m far more pragmatic and realise we all need our little pleasures, but do offer a solution on the aspect of affordability.

Insurance can be funded from your superannuation. This way the premiums do not affect cash flow. In some cases this can be the answer.

Like all insurance, no one likes paying premiums, and we hope to never to reap the benefits, but life insurance and income insurance are necessary, as the consequences of not having the cover can ruin a family.

If you would like advice in relation to your insurances please phone us Future Financial Services on Phone: 02 47276588 or via our Contact Page