maintaining your lifestyle One of the big achievements for us in life is moving out of the family home and gaining independence.
Whether you are single flatting in a trendy suburb or married with children out in the suburbs. I think this is something Gen X and Gen Y take for granted.
The reality of life is that there is a direct correlation between our finances and independence.
Just have a think about what would happen if you no longer had the capacity to earn an income due to illness or injury. Sure you’ve got your sick leave but then what happens??
Some of us (the minority) have adequate insurance and dependant upon the condition would get a combination of income protection payments, trauma /total and permanent disability (TPD) lump sums.
Some of us have default insurance (the majority) in their superannuation funds which is probably underinsured. One example I had this week is income protection insurance with a benefit amount of $850 per month, life/TPD insurance of $150,000. Do you think you could pay the mortgage off $850 per month?
The rest have no financial protection in place at all.
As an example consider this scenario and have a think about if it related to you. You’re a single 20 something year old living in a trendy inner city suburb. Lets say your earning $80,000 per annum and your rent is $500 per week plus other living costs including the car payments etc. You are unable to work due to illness for 6 months and have about 1 month sick leave. You have $10,000 you’ve saved to buy your first property and you’ve got 6 months to go on your lease.
After one month you’re income from work ceases, after another 2 months your savings are gone. Your $850 per month may cover food and some bills. What choices do you have then. Get a loan? Break your lease and move back in with your parents? Ask your parents for money? I don’t think you’d be happy with these thoughts!
Now consider the above scenario with a family and mortgage…. You get my point.
Life, TPD, trauma and income protection insurances can be utilises to protect your finances. Please give this some thought today and contact me if you have any questions.
Whether you are single flatting in a trendy suburb or married with children out in the suburbs. I think this is something Gen X and Gen Y take for granted.
The reality of life is that there is a direct correlation between our finances and independence.
Just have a think about what would happen if you no longer had the capacity to earn an income due to illness or injury. Sure you’ve got your sick leave but then what happens??
Some of us (the minority) have adequate insurance and dependant upon the condition would get a combination of income protection payments, trauma /total and permanent disability (TPD) lump sums.
Some of us have default insurance (the majority) in their superannuation funds which is probably underinsured. One example I had this week is income protection insurance with a benefit amount of $850 per month, life/TPD insurance of $150,000. Do you think you could pay the mortgage off $850 per month?
The rest have no financial protection in place at all.
As an example consider this scenario and have a think about if it related to you. You’re a single 20 something year old living in a trendy inner city suburb. Lets say your earning $80,000 per annum and your rent is $500 per week plus other living costs including the car payments etc. You are unable to work due to illness for 6 months and have about 1 month sick leave. You have $10,000 you’ve saved to buy your first property and you’ve got 6 months to go on your lease.
After one month you’re income from work ceases, after another 2 months your savings are gone. Your $850 per month may cover food and some bills. What choices do you have then. Get a loan? Break your lease and move back in with your parents? Ask your parents for money? I don’t think you’d be happy with these thoughts!
Now consider the above scenario with a family and mortgage…. You get my point.
Life, TPD, trauma and income protection insurances can be utilises to protect your finances. Please give this some thought today and contact me if you have any questions.
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