Sadly, we all know someone who has been diagnosed with cancer, was injured in a car accident, experienced a bout of depression or lost a partner suddenly. There’s a pretty good chance we’re going to need a hand at some stage.
No one wants to dwell on worse case scenarios but preparing for the worst and hoping for the best will give you comfort knowing that you and your family can deal with whatever happens because you know you are financially resilient.
Insurance is just another way of ‘making sure’.
Insurance pays you money, at a time you need it most, which gives you time to get over your illness or injury and reduces financial stress. Insurance gives you piece of mind.
The other option is to not have any insurance and get sick and broke at the same time.
Did you know that your ability to earn an income is your most important asset? It’s more valuable than any car or home you will ever own. You need to protect your income. You can’t insure yourself against redundancy or job loss, but you can protect yourself against unexpected illness or injury and you absolutely should.
Could you:
- live off your savings or sick leave for an extended period of time
- pay your rent or your mortgage and your telephone and utilities bill
- afford to live comfortably on Government Disability support
- keep the kids at school if you weren’t earning your income
- sleep at night if your home and car weren’t insured?
Unless you own your home and have enough money to pay yourself the money you need to live the life you want to age 65 and retirement, you should be protecting your income.
If you’re single
Being a single woman comes with freedom, but times can get tough if you become ill or injured. You need to look after yourself financially.
If you’re partnered and/or have kids
Even if you have a partner, and have more than one income in your household, most families need two incomes to make ends meet, particularly if you have kids. If you were to lose your income how quickly would your living standards drop?
How much life insurance do you need?
The amount of insurance depends on your individual circumstances and should cover paying off debts, covering school fees and your everyday living costs.
As your life changes, so does your insurance needs. Regular reviews of your lifestyle protection policies is necessary to make sure you are not over or under insured.
