Continuing this weeks theme of getting the foundations right, today we’ll talk more about strategies to optimize your financial future. Here’s some things to think about and action: –
What will happen if my income stops? Do I have enough insurance in place to protect my family if I’m unable to work, suffer a prolonged illness or injury? Worse still, what if I am no longer here and my family must survive without me?
You can protect your finances by having the right amount of insurance. Most people insure their car, home and contents, but don’t cover their income. Of course, some people have cover within their superannuation account. Have you checked that it’s enough and the policy meets your needs at claim time?
Insurance policies that are insufficient or don’t cover you for the type of event you are likely to claim for, are a cost to your finances. Such as health cover for pregnancy for a 70 yo… Whereas, a policy that has you covered in the event of a claim is valuable. Paying a premium to protect you and your family from the catastrophes that can derail your finances, shifts the risk from you to a pool of likeminded people, sharing the load.
Given that superannuation contributions are limited, it’s worth considering whether it’s right for you to have cover within super. Some employers offer salary continuance, a type of income protection insurance, as an employee benefit. If that’s the case, it may be that you are not paying premiums for a limited amount of reducing cover. However, it’s worth looking into and considering whether you are compromising your long-term retirement income by paying for life risk insurances via superannuation.
Having control of your finances so important. If you need help to work out how much insurance you need, speak to a qualified Financial Adviser who can help.