While many people focus on getting ahead and growing their asset base, we often give little regard to protecting what we already have. We don’t hesitate to insure our house, our car, our boat, but often neglect insuring what is effectively our most valuable asset – ourselves, our health and ability to earn income.
Consider the following relevant information:
- For every one home lost by fire…
- … four are lost through death – as a result of being unable to keep up the mortgage repayments following the death of an income earner..
- … but forty-eight homes are subject to mortgagee sale and lost as a result of disability of an income earner, and being unable to keep up the mortgage repayments.
This highlights the importance of having a suitable, balanced protection plan in place that will assure the security of the family home should the unthinkable happen to a family member, whether death, terminal illness or total disability for a period of time.
Cover both partners
It doesn’t matter who is the major breadwinner in the household – if one partner becomes seriously ill, disabled or dies, it will have a significant impact on the household finances.
The healthy partner may need time off work to care for their loved one, drive them to hospital appointments, and spend precious time together as a family or deal with their own trauma. They may also face increased expenses such as additional childcare, just to keep up their existing working hours.
While it may not be necessary to have the same level of cover, it is important that both partners are covered.
Your three main assets worth protecting are your home, your income and your health. It takes just one small hole in your protection plan to risk or lose your assets. But protection is also a balance between likely risk and acceptable cost. For this reason it is important to work with a respected insurance specialist to identify the best option to provide security and peace of mind for you, your family and your business.
Theo Simeonidis is a Financial Adviser, living and working in Millwater, and specialising in personal and business insurances. He is also able to provide a one-stop-shop for fire and general insurances.
For assistance on any personal or business insurances, Theo can be contacted on 027 248 9320 or 09 528 8724 or email theo@uprotectnz.com. Any such assistance is provided on a free, no-obligation basis.
Theo’s disclosure statement is available free of charge on request.