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Blog Post
Defining Our Most Important Asset
- By Wayne Lennan
- •
- 02 Feb, 2018
- •
TIME is your greatest asset!
What is Our Most Important Asset That Needs to Be Insured?
When it comes to Life insurance this is one of the most commonly asked questions.
The typical answer is 'my income'.
Without the ability to earn an income, the flow of other financial goals and objectives cease.
One asset we rarely think about is "Time".
Time is a finite resource for all of us. Time is the basis from which all of our goals and objectives are ultimately measured. Without a time measure, our goals and objectives are no more than dreams and wishes.
Here's some examples to demonstrate the power of insuring time:
The average Australian saves approximately 12% of their disposable income. While this is a good start, what it really shows is that someone has to work 10 weeks just to save one week's income. If this person became disabled and couldn't work again, their expenses wouldn't drop to 12% of their income. Indeed they would need as close to 100% of their income to manage.
The simple but brutal reality is that it takes 10 times longer to create an asset than to erode an asset.
Here's some questions you should ask yourself:
* How long did you have to save for your first home deposit?
* How long will your mortgage last?
* Do you know how long it takes for the bank to start repossession on your home when you can't pay due to
ill health or injury?
* If you own your own business, how long would your business survive and what would it be worth tomorrow, if you weren't there because of
trauma or incapacity?
* What would your income be if you could no longer work in your chosen profession or industry due to ill health or injury?
Insurance can protect the time you have already invested in creating your financial objectives. It ensures you will not have to start all over again if the unexpected happens.
When it comes to Life insurance this is one of the most commonly asked questions.
The typical answer is 'my income'.
Without the ability to earn an income, the flow of other financial goals and objectives cease.
One asset we rarely think about is "Time".
Time is a finite resource for all of us. Time is the basis from which all of our goals and objectives are ultimately measured. Without a time measure, our goals and objectives are no more than dreams and wishes.
Here's some examples to demonstrate the power of insuring time:
The average Australian saves approximately 12% of their disposable income. While this is a good start, what it really shows is that someone has to work 10 weeks just to save one week's income. If this person became disabled and couldn't work again, their expenses wouldn't drop to 12% of their income. Indeed they would need as close to 100% of their income to manage.
The simple but brutal reality is that it takes 10 times longer to create an asset than to erode an asset.
Here's some questions you should ask yourself:
* How long did you have to save for your first home deposit?
* How long will your mortgage last?
* Do you know how long it takes for the bank to start repossession on your home when you can't pay due to
ill health or injury?
* If you own your own business, how long would your business survive and what would it be worth tomorrow, if you weren't there because of
trauma or incapacity?
* What would your income be if you could no longer work in your chosen profession or industry due to ill health or injury?
Insurance can protect the time you have already invested in creating your financial objectives. It ensures you will not have to start all over again if the unexpected happens.
Insurance policies can’t stop events happening, but it means you will have confidence knowing that things you have invested in and financially achieved today, are safe guarded and you will not have to spend the time re-creating them because you will never have the time to do it again.