Plan 2 Prosper

Whether they’re highly paid professionals or full time home makers, women tend to underestimate the valuable contribution they make to the family unit. This undervaluation factor leads many women to neglect insuring their own lives and incomes. The reality is that a 30 year old woman could be protected with $700,000 life cover for as little as $1 per day, which is much less than a daily cup of coffee.

In a previous post “Protecting whats important to you …” we explored some of the value based discussions which are important for those still preferring to walk the underinsurance tightrope; again I’d implore those people to reconsider their position.

Despite the advances of modern technology such as washing machines, irons and dishwashers, and the advances of many husbands in sharing more of the household chores there are still plenty of things that need doing around the house. For many families, there is often someone who is predominantly the homemaker and child carer – without whom the family is lost. They may not be the primary income earner but their support ensures that the family is fed, clothed and at school or work on time.

When there are mortgages to pay and dependant children at home, a serious accident or illness could spell financial disaster for the entire family. Positions similar to involuntary retrenchment or having a small business fail. Stop and think for a moment … How much would it cost to replace the primary homemaker if something should happen to them? … In fact, the Australian Bureau of statistics has put a price on the value of unpaid domestic work, previously estimating that it’s worth around $70,000 per annum. 

Be it a one parent or two parent families, its not just mothers who are vulnerable. The failure of working women to take up trauma, disability or income protection is of particular concern to many within the wider financial services community.

Many young women are ambitious, financially savvy and particularly independent, but they are also totally dependent on their salary. So how would they ensure they can meet their obligations and protect the wealth they are successfully creating, if they were unable to work for a lengthy period of time? …. She’ll be right mate it won’t happen to me !!

This head in the sand apathy exists despite the fact that females have a higher risk of chronic and disabling diseases the older that they get. They also increasingly find themselves supporting themselves and their children (often after a lengthy career hiatus while raising children) as a result of rising divorce rates.

The number of women entering the workforce is higher than ever and while women’s incomes compared to men’s has improved significantly, information from insurance product providers suggests that the level of cover for women is 20 to 30% lower than that for men.

The problem of underinsurance is not new, particularly among women, but several recent surveys suggest the problem is not getting any better. Life insurance or wealth protection strategies are low on the list of financial priorities for many Australians, most notably because the benefits are not truly understood.

An appropriate wealth protection strategy is the foundation of any long term wealth creation strategy and financial plan. Contact us, if you would like to revisit the safety net you have in place while you walk through the tightrope that is life.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

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Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

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Disclosure / Disclaimer:

Dan Smith and Plan 2 Prosper are authorised representatives of GWM Adviser Services Ltd ABN 96 002 071 749 trading as MLC financial Planning, Australian Financial Services Licensee (AFSL:230692). The articles being accessed may contain general information and general securities advice. Before making any investment decision on the basis of the articles, you should consider, with or without advice, the contents of the articles in light of your particular investment needs, objectives and financial circumstances.

This entry was posted on Tuesday, April 27th, 2010 at 9:04 am and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.