Protecting Our Future Plans
Planning for the future is essential to financial planning. Having money now is great but it’s having money 5, 10, 15 years from now that really counts when it comes to financial planning.
So a plan is developed using appropriate strategies providing you with money in the future enabling you to achieve your goals. However, what if things go wrong? What if something happens where you are not able to achieve your future goals? No, I’m not talking about investment returns.
When planning and saving for the future, your income, expense and savings levels are critical. They are the main things that will determine how much money you will have in the future. So what happens if your income all of sudden stops? Or if you have a large one off expenses that depletes your savings and may even put you into debt?
Did you know:
Potential injuries, illnesses and even death can significantly hinder our ability to reach our goals and may even make them impossible. Our human thinking of “It will never happen to me” just doesn’t cut it when you look at the above stats. Accidents happen and cancer does not discriminate but there is something that we can do to minimise the impact. Life Insurance.
There are 4 kinds of Life Insurance each providing cover under different circumstances:
Death Cover – As the name suggests, this provides a lump sum amount to your beneficiaries when you die.
Total & Permanent Disability (TPD) Insurance – As the statistics show, we don’t always die but we can have serious injuries that stop us from working. TPD cover provides a lump sum payment if we are permanently unable to work due to illness or injury such as what may happen if for example we are in a serious car accident.
Income Protection – This provides you with a regular income if you are unable to work due to illness or injury.
Trauma insurance – Also known as critical illness insurance provides you with a lump sum if you suffer a critical illness for example cancer or a heart attack. The lump sum can be used to help fund medical expenses, payout your loans or whatever it is that you require at that time.
Planning for the future is important but those plans can go straight out the window if something devastating like a serious health issue happen to us. While we cannot protect against the emotional, mental and physical consequences of something happening we can protect against the financial aspects using a combination of insurance policies protecting us against death, illness and injury. Insurance however is complicated and there are differences between the policies offered by insurers. To ensure that you not only have the correct amounts of insurance in place but also the right insurance policy for you please contact the JBS office on 03 8677 0688.
*2002 Report of the Disability Committee, IAA
**AIHW (2008) Cancer in Australia: an overview 2008
***Access Economics Pty Limited (April 2007) Cost of Cancer in NSW, Report for The Cancer Council NSW.
^’National Road Safety Strategy 2011-2020’ – Australian Transport Council, May 2011
– Liam Rutty –