By Sacha Burchgart
Have you ever wondered about what might happen if you were sick or had an accident and could no longer work? How long could your family maintain their current standard of living without your regular income? Even if you were to receive government benefits, would this be enough to cover your bills and living expenses?
You may already have personal insurances but if there have been any changes to your circumstances it may no longer be appropriate. For example, have you purchased another home, had a new baby or changed jobs? Would your current insured amounts be enough to cover your debts and financially support your family should the worst occur?
There are many reasons to undertake a risk review and we’ve listed what we feel are the top 8 reasons below:
- You wish to maintain your family’s current standard of living
In the event of your untimely death what would happen to your family? Would they be able to pay the everyday expenses without your income to supplement them? Having adequate levels of personal insurance cover can go a long way to helping your family meet their basic daily living expenses such as groceries, petrol and home maintenance bills for the years ahead.
- You have increased your debt levels
You may have recently purchased a new home, boat or even rental property so you want to be able to protect these in the event that you cannot earn an income. By having adequate levels of insurance you or your family would be able to continue repaying the debts without selling your existing assets.
- You have changed job
A change in job is an exciting move and brings with it a whole new set of challenges. Even if you currently have insurance, if your role has changed you may not be appropriately covered should you suffer a total and permanent disability or total and temporary disability that prohibits you from working and earning an income. If your income has increased you may not have adequate levels of income protection insurance which cover up to 75% of your income should you suffer an injury or illness, or conversely, if your income has decreased then you may be paying a premium for a higher benefit than you may be able to claim on.
- You wish to send your children to a private school and university
Private schools can provide some of the most academically rewarding schooling for children, but can also be notoriously expensive. Would your family be able to cope financially with the ongoing school fees on only a single income? By reviewing your insurance arrangements we can help ensure that you receive adequate levels of cover to fund your children’s ongoing schooling in the event of your total and permanent disability or untimely death.
- You have a new baby in the family
A new member of the family is exciting and scary at the same time. What would happen if you were no longer able to provide the life you had hoped for due to injury, illness or even death? Would your spouse be able to pay for schooling and clothes alongside the other household expenses on only one income? By reviewing your insurances we can help ensure that you have adequate levels of cover to provide funds for your family whilst your child is growing up.
- You have a physically or financially dependent relative
If you have a dependent spouse or relative that you take care of, what would happen to them if you were no longer able to? Could another member of the family continue to provide this support or would the person have to be transferred to another facility? How would they cope without you to guide and support them? By reviewing your insurance arrangements we can help allocate funds to help ensure that your relative gets the assistance they require when you’re no longer unable to provide it.
- You wish to leave an inheritance
Leaving a legacy for your loved ones is something they may cherish forever, but inheriting a debt is not. By reviewing your life insurance we can help ensure that your family receives adequate funds to repay all debts and projected expenses, leaving your assets unencumbered for distribution through your will.
- The chances of suffering a major medical illness are staggering
Studies have shown that more than one in three males and close to one in four females will suffer some form of cancer before they turn 75 and an Rice Warner study found that one in five men and one in seven women will suffer a critical illness before age 64. Although most people don’t want to think about it, the unexpected can and does occur which makes it important to review your risk insurance needs to ensure that you and your family have financial protection.
Sacha Burchgart is the founder of Burcheart. Sacha was awarded the Affinia Chairman’s award in 2015 and the Affinia Practice of Year in 2016.
This article was first published at http://www.burcheart.com.au/