Here’s a confronting question:

what would you do if the main breadwinner in your household could no

longer bring in an income?

Do you have a Plan B? Most people don’t. That’s where insurance comes in.

 

Curve balls. They’re unexpected, often deceptive and it’s impossible to

predict their trajectory. That’s why they’re so devastating – in sport and in life.

There’s some interesting data now available about the kind of curve balls that

can impact your life, your finances and your retirement.

 

The headline figure is this: one in three Australians could be disabled for

more than three months before turning 65.1 If you combine this with

another startling fact – that 60% of Australian families with dependents will

run out of money if the main breadwinner can no longer

bring in an income – you can see the problem.

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Curve balls are pretty common, but so few people are prepared for them.

With the mortgage to pay, school fees to fund and day-to-day living expenses to meet,

you could run down your savings very quickly and face financial difficulty.

 

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The table below shows what’s at stake in terms of potential earnings to age 65. For example, if you are currently 45 and earn $80,000 per annum, you could earn around $2.15 million over the next 20 years. Isn’t that worth protecting?

 

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What kind of Plan B do you need?

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The last thing you need to worry about when you’re dealing with a curve ball is your finances.  That’s where insurance comes into its own. It’s a well-known saying that you only realise the value of insurance when you need it – and you don’t have it.

Taking out Income Protection insurance could provide you with a monthly benefit of up to 75% of your income to replace lost earnings while you recover.

Most Income Protection policies offer a range of waiting periods before you start receiving the insurance benefit (with options normally between 14 days and two years). You can also choose from a range of benefit payment periods, with a maximum cover generally available up to age 65.

 

 

Other things to consider

• Income Protection insurance premiums will generally be lower if you choose a longer waiting period and shorter benefit payment period.

• If you don’t have sufficient cash flow to fund the Income Protection premiums, you may want to arrange the cover in superannuation, where the cost will be deducted from your account balance.

• Other curve balls you may want to insure for include critical illness (such as cancer and stroke), total and permanent disability and death. These curveballs can be covered by different types of life insurance, which you may want to consider.

 

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Contact Us

 

To find out more, please Contact Charles Choong on (03) 9654 9886 or email to firstpacificfs@gmail.com for more information.

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1  Calculations based on data from the Institute of Actuaries of Australia 2000. Interim Report of the
   Disability Committee. IA Aust: Sydney.

 

 

Important information and disclaimer

This publication has been prepared by Charles Choong (ARN 244 731) is an Authorised Representative of Professional Investment Services (ABN 11 074 608 558), Australian Financial Services Licence 234 951

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Professional Investment Services Pty Ltd (PIS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither PIS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.