Protect Yourself First!
When people think about financial planning, they often focus on saving, investing, or paying off debt. While those are crucial steps, there’s one area that’s often overlooked, personal insurance. Yet, it’s one of the most important foundations of a solid financial strategy.
What Is Personal Insurance?
Personal insurance refers to policies that protect you, your income, and your family from unexpected events. This includes:
Life insurance – Provides financial support to your loved ones if you pass away.
Income protection – Pays a portion of your income if illness or injury stops you from working.
Total and permanent disability (TPD) insurance – Offers a lump sum if you’re permanently unable to work due to injury or illness.
Trauma (critical illness) insurance – Covers serious conditions like cancer, heart attack, or stroke.
Why Is It Important?
1. Protect Your Income – Your Greatest Asset
Most people insure their cars or homes without question. But your ability to earn an income is likely your most valuable asset. If that’s taken away, how long could you meet your expenses without dipping into savings or relying on others?
2. Avoid Financial Setbacks
A major health event or accident can derail even the most carefully planned finances. Insurance cushions the blow, ensuring you don’t have to sell your assets or take on debt during a difficult time.
3. Peace of Mind for You and Your Family
Knowing that you and your loved ones are financially protected gives peace of mind. It allows you to focus on recovery instead of worrying about money, if something goes wrong.
4. It's Part of a Holistic Financial Plan
Personal insurance is about risk management. It complements your savings and investment strategies, helping you stay on track toward long-term goals, no matter what life throws at you.
Final Thoughts
You can’t predict the future, but you can plan for it. Personal insurance is not about expecting the worst, it’s about being prepared so you can keep moving forward when life doesn’t go to plan.
If you’re not sure what cover you need or if your current policies are still right for you, now’s a good time to review. A financial adviser can help you throughout this process.