Are you prepared for the unexpected?
Life can throw up unexpected surprises and obstacles. Recently the whole word has been impacted by the Coronavirus pandemic and many thousands of people have lost their lives much sooner than they should have done.
While in Western Australia with our closed borders we have been very fortunate in managing to restrict the impact and life for many of us has returned almost back to normal.
The recent events have definitely taught us that no matter how well we plan our lives the unexpected can pop up and throw a huge spanner in the works.
The conversations we have with many of our clients reveal that most do not have adequate plans in place to protect themselves or their families if the unexpected happens.
Many Australians have some cover within their superannuation for life and total permanent disability, these are rarely checked to see if they are adequate for the needs of your family.
According to Rice Warner’s Underinsurance in Australia 2017 report it reveals that if the average Australian was to use their death insurance:
- 47% of their basic family needs would be met
- 28% of the amount required by their family to maintain their standard of of living after the death of a partner would be met
With regards to income protection, Australians are even further at risk:
- The median level of income protection meets 21% of needs
- The median TPD meets 14% of needs
It’s not a pleasant topic, but something you should address. You work hard to achieve financial goals such as buying a house, saving for retirement and unexpected events can see years of hard work wasted. Try and put aside a little time to check what you do have in place. Check in with your financial planner or speak with your life insurance provider for some advice.
If you need help, we have Luke Grundy form Humblebee Financial Planning in our office, he can discuss all your financial planning and insurance needs.