Article published by RJS Wealth Management Pty LtdDid you know that 95% of Australian families don’t have enough insurance?Have you been impacted by tragedy or hardship? Maybe you’ve lost a parent or a love one or maybe you know someone close to you that has been diagnosed with cancer or a mental illness. All these events create unbelievable stress not just to you but also family members. And to add to the stress, the considerable financial burden that results when someone is unable to work for an extended period of time makes the situation worse. In many cases, this financial burden could have been avoided with adequate levels of insurance.A research commissioned by Lifewise about Understanding the social and economic cost of underinsurance shares some very interesting facts:
- One in five families will be impacted by the death of a parent, a serious accident or illness that leaves a parent unable to work;
- The typical Australian family will lose half or more of their income following a serious illness, injury or the loss of one of parent as a result of underinsurance;
- 95% of families do not have adequate levels of insurance; and underinsurance is expected to cost the federal government $1.3 billion over the next 10 years.
How much is enough?There are many factors affecting the level of insurance cover you need. Here are some questions you’ll need to answer:
- If you were to become injured or too sick to work, how long could you keep your lifestyle and how will you pay your bills?
- If the worst case scenario happens and you pass away, who would repay your debts? What sort of lifestyle would your beneficiaries have?
- Are you self-employed? If you were to have an accident and were unable to work, how would you cover your business expenses?
Once you’ve started painting the picture of your family’s future and the costs involved in raising a family and reaching your goals, you’ll start to get an idea of how important insurance is to cover those needs.You must also remember that you might have the right insurance coverage at present but your needs will change over time.This blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.