How do you value – Health and Wellbeing?
Did you know that every working Australian has a 1 in 3 chance of becoming disabled for more than 3 months before turning age 65. This means a 1 in 3 chance of not being able to work for a period of more than 3 months. The majority of disablements occur outside of work so Workcover/workers compensation often does not apply.
Have you had the unfortunate experience of being off work for a few months? … thankfully I haven’t, but I know a few people who have. They tell me watching the mind numbing soapies is painful enough without stressing over having the extra burden of paying the mortgage or regular expenses while they are unable to work. It is a fact … disabling sicknesses and injuries happen every day.
While it’s important to build your wealth, its equally important to protect your wealth to help ensure you achieve your goals. While most of us insure our cars and other valuable contents and possessions, not many of us consider insuring ourself which is more often than not our most valuable asset.
Some typical questions I would encourage you to consider in identifying your own values with regard health and wellbeing:
- If you weren’t going to be here tomorrow what would you like to see happen?
- What dreams would be left unfulfilled?
- What happens if you get sick and are unable to work?
- How would you define your life, that is, the balance between fitness and well being?
- How would you best describe your attitude to money/life/stress/risk?
- If you could what would you do differently to what you do now?
What tools are available to assist?
Fortunately income protection insurance is available to ensure that in the event you are unable to work due to a sickness or accident you will continue to receive a portion of your income. What’s more, premiums paid for income protection are generally tax deductible. You may have insurance cover provided through your employer but is this sufficient in the event of a claim? Most employer income protection policies provide a replacement income for up to 2 years. You may need to ensure you are covered up to age 65 – or your retirement date. It is possible to purchase a personal income protection policy that complements your employer policy which assists to keep your premium down. Have you really thought through what you would do or need to do if your health prevented you from earning an income?.
And although no one likes to really think about it – what about the event of your premature death. If you have dependents, you may want to make sure that sufficient funds are provided for them or that funds are available to pay out an existing loan so those you leave behind are not adversely affected from your death. While the initial trauma of death, disability or illness can be devastating, the financial consequences can be just as severe.
If you have life insurance provided by your employer, ask yourself the question: is this sufficient to clear your debts and provide for your dependents (assuming you are like the majority of the population and hold this as an important personal value)? If you need additional insurance, it may be that you are better organising this through your super where your premiums may be tax deductible.