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Insurance - Big Sky Financial Solutions

Insurance



Insurance - Protecting your most important asset, YOU

Most people protect their physical assets through strategies such as home and car insurance. They realise the value of these things – and the risk that they may be destroyed or devalued.

However, far fewer people give the same consideration to protecting their most important assets – themselves. Studies show that most people do not usually recognise the effect that an accident, short term illness or loss of employment can have on their lifestyle. Mortgage payments, children’s education, living expenses and other commitments can all become difficult to manage if you lose your regular income.

Big Sky Financial Solutions can help you evaluate insurance options that will protect your family. Call 1300 700 189 or email us to arrange an appointment.

Risk management is an important part of planning and securing for financial future.

What would move your financial goal posts?
There is a wide range of events which can change your financial situation, usually lowering the earning capacity or asset base of your family unit. These include:

  • Relationship breakdown
  • Unexpected retirement
  • Irregular or loss of employment
  • Illness
  • Accident
  • Business failure
  • Loss of asset – eg a building fire, car accident, burglary

The risk of some of these events occurring can be identified and the costs anticipated.


Are you really covered?
A large number of people believe that they have adequate insurance cover. This is not necessarily true. Rice Walker actuaries estimate that only 4% of the 2.5 million Australian families with dependent children have a level of cover that they deem appropriate.

In fact, 6 in 10 families with dependent children do not have sufficient life insurance cover to look after their loved ones for more than a year if they were to die.

Read more on the importance of having the right level of insurance, protecting lifestyles.

A common response - Income protection insurance is too expensive!

It’s interesting that Australians are more likely to insure their homes, cars and boats than their most important asset – their ability to earn an income.

The irony is if you don’t have an income, chances are you can’t afford a home, car or boat and wouldn’t have the wherewithal to insure them anyway! Money experts agree that even if you do nothing else to protect your family’s lifestyle, taking out income protection is essential.

Think you won’t need it? Think again. During your working life you have a far greater risk of being disabled than of dying. At age 40, the risk is 15 times greater.

Here’s some more food for thought. 75% of the working population will be disabled for longer than one month at least once in their working lives.

Won’t the government help you out?
There’s a good chance the answer is ‘no’. For a start, 7 out of 8 disabilities are illness-related. Of the percentage of accidents resulting in handicaps, less than half happen at work. And since workers’ compensation doesn’t cover accidents or illnesses unless they are work-related, chances are you’re on your own.

Having the right income protection policy is your safety net. It will pay the policy owner 75% of their monthly wage or business income in the event of specified illnesses or accidents. Money to keep going!

Expensive? What price the security of a regular income stream to replace your pay while you can’t work? Besides, in most cases income protection premiums are tax deductible, so there’s really no excuse.

Looking out for your lifestyle
If an unplanned event does occur, you’ll generally have enough to worry about without adding the burden of stressing about money too. A risk management strategy can help give you the peace of mind that comes from knowing that you are in control of your financial obligations.

With Big Sky Financial Solutions you can develop a strategy that looks out for your lifestyle. Call Big Sky Financial Solutions on 1300 700 189 or email us.