Sadly, the answer to the first question for a lot of working people in Norwest Sydney is either never or not for a long time. And the answer to the second question is usually a financial catastrophe.
The ability to earn an income before you retire is of critical importance to you. Income is the fuel that keeps your financial engine going and builds your assets for the future. If the family no longer has its main sources of income, then everything tends to collapse.
Home and car loans can’t be paid back, bills can’t be paid, school fees fall due, and it can be hard to even put food on the table. This can be a very serious and financially distressing event.
You might think that
- You are bullet proof and nothing will happen to you, but how can you be sure you won’t have a heart attack, get in a serious car accident, or get diagnosed with cancer?
- The government will come to your rescue. Not necessarily, even if you do get some government benefits, it is likely that they would be far below the income you need, and are accustomed to.
- But, I already have private health insurance. Sorry, private health insurance only pays for some hospital fees. It does not pay for all your other costs in life.
The frightening thing is that the chances of something happening over the course of your working life are a lot higher than you think. Especially when you combine the chances with a partner.
This is all very avoidable. All you need to do is to have your insurances properly reviewed by a professional. That way you will have a solid plan B in place. Plan A is generally to build wealth and hope that nothing happens to you, but you also need to have a plan B in place. This is so that you and your family are not financially destroyed by a serious health event that turns into a serious financial event.
There are 4 major types of personal insurance that you need to have reviewed. They all work together to provide a secure plan B. They are shown below.
