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Are you prepared if something goes wrong?

Posted January 19, 2018 by MoneyLink
https://moneylink.com.au/are-you-prepared-if-something-goes-wrong/

We’re all conditioned to look away from the ‘darker’ aspects of life: serious illness, major accidents, death. We don’t feel comfortable talking about any of them. But we must. Because there is value in being prepared for when life takes an unexpected turn.

 

 

What happened to Craig and Jill?

The story of Craig and Jill is a heartwarming reminder that there is life after catastrophe. When Craig lost his leg and the use of one of his arms in a motorcycle accident, he was fortunate to have both Total and Permanent Disability Cover and Income Protection Insurance.

This cover meant that he and Jill were not left wondering what would happen next. In a time that was highly stressful and full of uncertainty, they had the comfort of knowing that their bills were being taken care of. Quite simply: They were able to get on with their lives, focusing on what really mattered – Craig’s rehabilitation and recovery.

Total and Permanent Disability Insurance (TPD) provides cover if you are totally and permanently disabled, meaning that you can’t work again in any occupation, or you can’t work in your usual occupation. TPD insurance helps cover health expenses related to recovery, as well as debt repayments, and the cost of living.

Income protection insurance, also known as salary continuance, can help you manage your expenses if you are unable to work for a certain amount of time because you are sick or injured.

The cover in your super might not be enough

Both are important to consider – especially if you have financial commitments like a home loan, or dependents who rely on your income. Many people think they’re adequately insured through their superannuation or mortgage, but this kind of generic insurance doesn’t always cover exactly what you need, so consider a personalised policy, tailored to your individual circumstances. A financial adviser can help you work through the fine print and decide what you need. Calculations need to be based upon not just your income and expenses now, but also your earning potential, and likely spending, in the future.

Ensuring you have the right type of cover is extremely important, as is ensuring you have enough cover to meet your expenses. Recovery is only the start of the process. What about the cost of rebuilding your life? You may need to make modifications to your home to create wheelchair access and cater for other changed physical needs.  You may need ongoing psychological support.  The medication you may require may not be subsidised by Medicare. You may have ongoing, unavoidable medical costs.

And circumstances change, too. The policy you have today might not be suitable in another few years, if, in the meantime, you start a family, or take on the care of a relative, or buy property. So, a regular ‘review’ of your policies is also a good idea.

Being prepared should be a priority

As much as we might not want to think about ‘what if?’, it’s a fact of life.  And there are statistics to prove it: Every year, about 140,000 people are diagnosed with cancer, 50,000 people are affected by strokes. About 1300 people die on our roads, and many more become lastingly disabled as a result of car accidents.

We all are guilty of saying: ‘That’s not going to happen to me.’ As we cross our fingers and hope for the best, but we can never be certain. And when you’re in that particular moment, dealing with your own health crisis or a loved one’s scary diagnosis, then you just want to be sure that everything else – your mortgage payments, your medical bills, your car finance, the electricity bill, the groceries, the school fees – can be dealt with easily and smoothly.

And with the right type of insurance, that will be the case.

MoneyLink Financial Planning Pty Ltd is an Australian Financial Services Licence Holder. No:.247360

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