Home Alex's posts How to look after your family

How to look after your family

by alex brownbill

So, for a financial advice company, getting any traction on social media is a pretty difficult thing. Yesterday though, we put up a story that attracted more reactions and comments than we’ve had pretty much ever!

 

It was about a story that’s been writing itself since January this year. The story goes like this…

 

Back in January, Matt sat down for a  beer and a catch up with a mate of his near our office in Freo. Over beers, his mate asked him take a look over his life insurances. He had some protection in Super, but wasn’t really across the detail. He didn’t know whether they were appropriate. Getting this done was especially pressing given that he had a wife and a child, with another on the way.

Matt took a look and recommended immediately that he make changes (we often see families relying on insurances in super that just aren’t robust enough to handle a claim. Most people don’t realise that most cover in Superannuation is junk cover).


[img_text_aside style=”1″ image=”https://voyagefinancial.com.au/wp-content/uploads/2017/09/Untitled-design-14.png” image_alignment=”right” headline=”Do%20you%20need%20to%20get%20your%20insurances%20sorted%3F%20″ alignment=”center”]Click here to contact us for a Financial Safety Net review. We’ll get back to you ASAP.

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At the end of the roll-over to Matt’s recommendations (and only days after the new cover had been put in place), our client suffered an accident that resulted in the loss of eyesight in one eye. This accident (caused by a glass bottle exploding and the shards entering his eye) could have happened to anyone.

 

Our client spent time in hospital, but very luckily due to the nature of his job was able to continue working. However, we managed to activate part of the new insurances that had only JUST been approved and have a $500,000 partial disability insurance pay out awarded to him.

 

As result, he’s now able to pay out his mortgage and provide financial relief to his family. He can take further time out to recover and get used to his new reality.

 

Critically, his insurance cover through his super was declined because it did not meet their very technical definitions on what counts as a ‘disability.’ These definitions are incredibly tight and very difficult to meet (you basically have to be half dead before they’ll consider an application).

 

So, if you have a family, what would happen if that accident happened to you? Do you rely on your eyesight for work? Or what would happen if that accident severed your hand muscles? Could you keep your current job? Or perform it at the same capacity?

 

So, I’m not even going to give any advice on this one – apart from this…

 

If you’re relying on insurance in your super to get you and your family by in case you have an accident/ get injured/ become sick – DON’T.

 

In truth, you have NO idea what you’ll be able to access if any of those things happen to you.

 

This space is very technical and I personally believe anyone who leaves the financial health and wellbeing of their family to chance and to assumption is being grossly negligent.

 

Seriously, I’ve written about this plenty of times before (try Dealing with the Unthinkable, What Happens When You Have a Health Scare and The Widow’s Story) but NOTHING will focus your attention on your financial situation and your insurances like thinking that you’re getting sick or being in an accident. If you do, and you don’t have your insurances sorted, it’s too late. You’ll live with some of the biggest regret of your life.


[img_text_aside style=”1″ image=”https://voyagefinancial.com.au/wp-content/uploads/2017/09/Untitled-design-14.png” image_alignment=”right” headline=”Do%20you%20need%20to%20get%20your%20insurances%20sorted%3F%20″ alignment=”center”]Click here to contact us for a Financial Safety Net review. We’ll get back to you ASAP.

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