Finance News

Why You Should Safeguard Your Biggest Asset

Why You Should Safeguard Your Biggest Asset

Author: Nick Campese

My parents took me to pick up my first car the day after my 18th birthday. I was excited, nervous and proud that I’d worked hard enough to be able to afford it.  I’d gotten my license the day before and couldn’t wait to drive it home.

We met the seller. I handed over the cash and jumped into the driver’s seat. Not so fast, my Dad cautioned.

Wise man that he is, my Dad took the keys and said we weren’t going anywhere until I got at least some level of insurance. I argued, telling him I didn’t need insurance. I was a great driver and nothing would ever happen to me.

My Dad agreed: I was a great driver. He had taught me how to drive, after all. But he explained to me that sometimes things go wrong no matter what we do. What if someone else on the road hit me and couldn’t pay? What if my car was stolen?

In that moment I realised I was a little naïve, and promptly called to arrange some insurance. I’m glad I did.

Having been on the financial planning scene for sometime now, I’ve met plenty of people who only think about income protection insurance after they are sick or injured. How would you pay your rent or mortgage if you couldn’t work for six months? Unfortunately, no one is immune from cancer, or from tripping over and breaking an arm.

As Australians, we’re notorious for saying ‘she’ll be right’, but ‘she’ll be right’ doesn’t cut it when you have a spouse, kids, a couple of credit cards and a mortgage, and become unable to provide as the main breadwinner.

Typically, your income is your biggest asset. Without it, your lifestyle will change dramatically.

Did you know that you can pay for income protection insurance with your superannuation?

If you or someone you know would like to learn about how they can insure their financial security against unforeseeable illness or injury, please get in touch.

Better safe than sorry.

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