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Blog Post
6 Objections To Insurance
- By Wayne Lennan
- •
- 03 Nov, 2020
- •
Why you object to insuring the most important thing - You!
Everyone has insurance - motor vehicles, homes, contents, people even insure their mobile phone these days. So why don't people insure the most important thing, their own life. Why do we see a mobile phone more worthy of insurance than ourselves? It's a difficult thing to understand when put in such simple terms. Here are some of the reasons that are often used...
1. It's too expensive or not in my budget - well, ask yourself this, will the insurance of your phone or car mean financial survival - likely not, but life insurance is exactly that - it is the financial survival of you and your family. Everything costs, everything must be budgeted, and life insurance needs to become one of those things that are at the top of the list. Sure, replacing the family car or the new iPhone is important, but losing an entire income is in another ball park altogether. We really need to prioritise our insurance needs.
2. I have insurance in my Super - This is true for many people but is it sufficient should you be impacted by a life changing event such as injury, illness or death. Often the insurance within your superannuation is limited in the amount, has limitations on the release of the funds, it isn't free - you are paying additional premiums from your superannuation contributions which ultimately erode those retirement savings.
3. I have no dependants or minimal debts - That may be true at one point in your life, but everyones life changes. Often this occurs when we least expect it, so having something in place is important. Once life takes off, insurance is often the last thing on your mind.
4. I'm young and Healthy - This is likely the perfect time to start. While young and healthy, premiums are generally at their lowest. Also, it will be less likely any limitations or exclusions will be applied as they may be later in life if you decide to leave it until the last minute.
5. Workers Comp will cover it - Workers Compensation only covers you wages and medical expenses if you become sick or injured at work. The legislation varies between states. For example in NSW there are two entitlement periods (0-13 weeks and 14-130 weeks). After 130 weeks your payments stop unless you meet certain criteria. Beyond that, more than 50% of serious accidents happen outside the workplace so you need to cover that yourself.
6. My private health insurance will pay - No they won't. Private health allows you to choose your doctor or hospital and they will pay various costs associated with your injury or illness. But, there is still out of pocket expenses that you have to pay, often these can be significant.
So, don't make excuses, they really aren't valid. Call me today 0412 49 42 43 or visit my website to book a FREE consult and we can discuss your individual situation and get you the best deal.
1. It's too expensive or not in my budget - well, ask yourself this, will the insurance of your phone or car mean financial survival - likely not, but life insurance is exactly that - it is the financial survival of you and your family. Everything costs, everything must be budgeted, and life insurance needs to become one of those things that are at the top of the list. Sure, replacing the family car or the new iPhone is important, but losing an entire income is in another ball park altogether. We really need to prioritise our insurance needs.
2. I have insurance in my Super - This is true for many people but is it sufficient should you be impacted by a life changing event such as injury, illness or death. Often the insurance within your superannuation is limited in the amount, has limitations on the release of the funds, it isn't free - you are paying additional premiums from your superannuation contributions which ultimately erode those retirement savings.
3. I have no dependants or minimal debts - That may be true at one point in your life, but everyones life changes. Often this occurs when we least expect it, so having something in place is important. Once life takes off, insurance is often the last thing on your mind.
4. I'm young and Healthy - This is likely the perfect time to start. While young and healthy, premiums are generally at their lowest. Also, it will be less likely any limitations or exclusions will be applied as they may be later in life if you decide to leave it until the last minute.
5. Workers Comp will cover it - Workers Compensation only covers you wages and medical expenses if you become sick or injured at work. The legislation varies between states. For example in NSW there are two entitlement periods (0-13 weeks and 14-130 weeks). After 130 weeks your payments stop unless you meet certain criteria. Beyond that, more than 50% of serious accidents happen outside the workplace so you need to cover that yourself.
6. My private health insurance will pay - No they won't. Private health allows you to choose your doctor or hospital and they will pay various costs associated with your injury or illness. But, there is still out of pocket expenses that you have to pay, often these can be significant.
So, don't make excuses, they really aren't valid. Call me today 0412 49 42 43 or visit my website to book a FREE consult and we can discuss your individual situation and get you the best deal.