Personal Insurance can be a very sensitive subject for many people. In Australia there is a massive issue surrounding underinsurance and the uninsured. The Aussie attitude of “She’ll be ‘right” and “It just can’t happen to me!” is prevalent in our society. These attitudes underpin our very culture and often it is to our personal detriment.
We as Australians like to think we are progressive and open minded and yet, when you look closely you will find that as a society we are comparatively rigid and conservative compared to our peers and neighbours. We avoid so many conversations and discussions around topics that are a reality in everyday life and it is not protecting anyone – it is harmful!
Because we have become so concerned about offending someone else or how we will look to others in having these conversations. Or, we are just plain scared of the concepts involved.
Many of us also assume that we don’t need to think about retirement until we get to our 50’s or 60’s and that the government will take care of it if we don’t have the resources to support ourselves. The fact is that if you are under age 40, you will be highly unlikely to receive the Age Pension when you retire. The Federal Government has been hinting at this in at least the last 7 Federal Budgets without coming out and openly admitting it.
Then your mate down the street with 6 investment properties and 2 prestige cars out the front offers some advice on how you can have the same…… Sure, he probably has knowledge to share and he has probably been successful.
However that doesn’t guarantee his advice and experience will work in your case. Sometimes, that advice from the mate down the street can lead you down the path of ruin, and sometimes he is not as successful as he appears. He could be one loan payment away from losing everything due to debt. In many cases, those who are actually successful without seeking any professional investment advice have either invested a lot of time in self-education to learn what they need to or become successful by sheer dumb-luck. You know what they say – only fools rush in!
The one I like the most is when someone tells me that insurance is a waste of money. Which is kind of like driving a car without wearing a seatbelt or entering a construction site without wearing boots and a helmet (ridiculous – right!!??). Most of the time you will be fine. Nothing bad will happen to you. You will survive without a scratch. And then there is that one day that something happens and you really wish you had worn that seatbelt. Everything is no longer fine. If only you had worn that seatbelt….
I can think of multiple examples where insurance has helped clients out of tight binds.
- Like the perfectly health 40-something professional woman, living in a regional area who was diagnosed with aggressive breast cancer just months after her annual health check and breast screening. She found herself having to spend thousands on flights to receive treatment and ultimately multiple surgeries.
- A nurse who complained her insurance premiums were becoming too expensive and a year later was diagnosed with a degenerative brain disorder which which will ultimately lead to her death.
- The self-employed painter who fell off his ladder and broke his back, requiring a long, slow five years of rehabilitation before he could make a living again.
Without insurance, each of these people would have faced financial ruin and lost everything they had worked so hard to achieve.
I have never heard anyone who has had an Insurance claim paid complain about their premiums.
Is it time for you to discuss protecting your family and your financial future with a professional?
Authorised Representative of Aon Hewitt Financial Advice Limited
Authorised Representative No. 324789
Aon Hewitt Financial Advice ABN 13 091 225 642 AFSL No. 239183
This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.