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The most common perception around insurance premiums is that they are too expensive. But is this really the case?
Myth #1 “Insurance is too expensive”
Think about the sort of money you’d lose if you couldn’t work for a few months, or worse, if you could never work again. Paying insurance premiums is a small price to pay for financial security, and could only set you back as little as one take-away meal per week.
For example, a 35-year old female teacher who earns $60,000 p.a. takes out:
- a Life policy to cover her mortgage of $500,000, and
- an extra $250,000 in Trauma Cover.
Her total premium is $802.68. At around $15 per week, that’s the equivalent of one take-away meal each week.
Source: Asteron Life Limited, based on a non-smoker taking out Life Cover and Recovery Plus, both with stepped premiums paid annually.
Income protection and business expenses insurance are tax-deductible, further reducing the cost of premiums for the self-employed. So for those running their own business, you can combine these two types of policies to cover your work and personal expenses, whilst potentially reducing your tax bill.
Myth #2 “It won’t happen to me”
Stop thinking that you’re the lucky one. Stop thinking that you’re invincible. If there’s one thing you need to understand, it’s the alarming statistics.
The risk of being diagnosed with cancer by the age of 75 is 1 in 3 for males and 1 in 4 for females.
Of the working population in Australia, 1 in 6 men and 1 in 4 women are expected to suffer a disability from the age of 35-65 that causes a loss of six months or more from work.
Have a think about your family and friends. Think about your friends’ families. How many have had cancer? How many have had time off work due to an illness? It’s not a pleasant thought, but one that all Australians need to seriously consider.
Talk to a Financial Planner at Verve Group today to prepare for the unexpected. Call (08) 8120 4877 or email contact@vervegroup.com.au to book a complimentary initial consultation.