Insurance
Very few of us would dream of driving around without any car insurance, however when it comes to insuring ourselves or our families against illness, injury or dealth, it is quite a different matter.
Recent research shows that 84% of Australians purchase car insurance against a paltry 31% who insure themselves against loss of income*. This is a huge difference considering the most valuable asset you have is YOU.
Remember one thing when you're buying life insurance. Unlike health and other types of insurance, you will never receive any benefits from it. Instead, someone else, the beneficiary you designate, will receive the benefits. When you think of buying life insurance in this way, it puts a whole new spin on things.
Given this perspective, if you're a single individual, without dependents, you don't need life insurance. All you need is burial insurance.
If, however, you have a family, you need life insurance to protect them. The life insurance you buy should replace the net income that you bring home every month. In addition, it should be enough to pay off your family home and car, as well as any other large bills you may have. You also have to consider future expenses for your children, such as college. You might want to buy enough life insurance to insure that your children get a college education.
And it is important not to underestimate that if a family loses a stay at home mum it will require more than $75,000 per year for childcare or home help**.
At Reid McGill we can assist you with a number of key insurance products such as:
- Death cover
- Total Permanent Disability (TPD)
- Terminal Illness
- Income Protection
Many people put the purchase of life insurance off until they really need it. In many cases when they decide they need insurance it is simply too late. Give Reid McGill a call on 02 6674 5007 if you wish to discuss your insurance requirements.
* IFSA, Securing Australians' Wellbeing, July 2007
** IFSA, Australian mothers - undervalued and underinsured, October 2005