Creating a financial safety net with adequate insurance cover

15 September 2020

To help you find solutions to your challenges, explore opportunities to help maximise your profitability and minimise any of your financial concerns, get in contact with Michelle and the team.

The recent Australian bushfires illustrated how well the average Australian looks after their own insurances. The Insurance Council of Australia’s statistics show, on average, households insure up to 40% of their possessions and some households decline to insure at all.

As has been evidenced with extreme fires and floods in 2020, when a total loss occurs, people who are underinsured or not insured must start from scratch and in some cases, they may be unable to afford to rebuild. Lack of appropriate insurance can be devastating.

But it’s not just the value of your home or contents where your exposure lies. Losing your ability to earn an income because of sickness or injury can be catastrophic to a person and over the period of time leading to retirement, has the potential to result in significant losses.

Did you know that every day:

220 people will be diagnosed with cancer;

132 people will suffer major coronary events, of which half are fatal;

47 people will undergo coronary artery by-pass surgery;

53 people will undergo coronary artery angioplasty procedures; and

34 people under the age of 65 will have their first stroke [1].

If any of these things happened to you, how would you survive financially? If you’re anything like approximately 30% of Australians, you would not be able to survive on your savings for more than 30 days [2].

In order to keep you and your family on track in the event of illness or injury, it’s worth considering some options to help provide you with a financial safety net. For example, in the event you suffer an illness or injury that means you can't work, income protection insurance can provide a monthly payment while you’re not working, so you don’t have the additional pressure of unpaid bills.

It is important to note that workers compensation is not a replacement for income protection as workers compensation only covers employees if they are injured at work or become sick due to their work.

All too often, people without adequate insurance cover end up “paying” anyway. But with the assistance of Findex and our Family Office model, we can help you feel confident about your financial health and future.

The information contained is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider whether the information is suitable for you and your personal circumstances. Before you make any decisions in relation to a financial product, you should obtain and read the relevant Product Disclosure Statement or information statement. You should seek personal financial advice before acting on any material. Findex Advice Services Pty Ltd ABN 88 090 684 521 AFSL No. 243253

[1] Source: Australian Institute of Health and Welfare. [2] Source: Centre for Social Impact and NAB.