If you’re young or just young at heart, with no mortgage and no children - chances are you don’t spend much time thinking about what can go wrong. And don’t get us wrong - we’re not saying that you should dwell on worse case scenarios. Life is to be enjoyed and independence to be savoured.
But take just a moment to consider what would happen in the event that you became seriously ill or disabled and couldn’t work.
- Would you be in a position to rely on parents, friends or the extended family if you had an accident or something happened to your health
- Would you want to rely on a Centrelink cheque of around $570 a fortnight?
- How would you pay for the portion of your medical bills that Medicare and private health insurance doesn’t cover?
- What would happen to your independence?
What next?
Depending on your financial circumstances and obligations you may not needmore Term Life Insurance than would be provided by a good superannuation fund.
You may, however, want to consider the role of Income Protection of Total and Permanent Disability Insurance in helping you maintain your life style and guaranteeing your financial independence.
- Take a minute to check your superannuation fund to find out what your current levels of cover are.
- Check out the Lifewise insurance needs calculator. It'll provide you with an estimate of your insurance needs in a matter of minutes. But remember, this is only an estimate.
- Talk to your family and friends about it or seek advice from a professional financial planner.
Keeping up the good work
It’s important to remember that your insurance needs change as your circumstances change. You should reassess your insurance needs if you decide to go into debt, get married, start a family or start a business.