Life Insurance Myths Busted
People may overlook insurance covers and how helpful they can be. We look at the common reasons why people don’t take out insurance and shed light on why you may need to consider it. It is important to remember for every reason to not take out insurance, there is often an equally valid reason for taking it out.
- “I don’t need it”
No one wants to think of the worst, but chances are a traumatic event will occur in your life that may require financial aid to help you in a difficult time. Making sure that you have the cover you need to help protect you and your family.
- “I’ve got insurance cover elsewhere”
While it’s great you have cover elsewhere, it’s important to know:
- What type and amounts of cover you have;
- What you are covered for;
- What you may not be covered for
Allowing Wealth Depot to help manage your insurance will give you peace of mind that you address any gaps and have the adequate amount of insurance coverage to meet your needs.
- “I’ve got other priorities”
You may think your money is better spent elsewhere like paying down your mortgage, saving for your retirement, or you simply can’t afford it.
After establishing you have a need for insurance, it’s a matter of balance. Of course, paying off your debts and saving for your retirement are just as important, however, if your income stops, your goals and objectives comes to a halt with it. Insurance is a safeguard to provide a sum of money that can replace your lost income and help meet your goals and objectives.
- “My insurance is no longer relevant to me”
However true this may be, it is important to regularly review your insurance policies to check whether your insurance cover still meets your needs. Changes to your circumstances will have an effect on your insurance needs, consider questions like:
- Have you experienced a relationship breakdown or established a new relationship?
- Are your dependents still dependents?
- Are there new dependents?
- Has your debt reduced?
- Have your other assets increased in value?
- “Can’t I rely on social security?”
The Disability Support Pension (DSP) is currently less than 30% of the male average wage, or approximately $22,800 p.a. for a single person. According the Australian Bureau of Statistics, only about 15% of current applicants are granted the DSP, with the vast majority of applications being rejected.