The Art of Survival : Take the Test

What is your most valuable asset?
I am frequently asked what the most valuable asset a person can have; my answer is always the same. Your ability to earn…. and the only thing stopping you from earning is your health. While we all understand this, it is surprising that insurance to protect personal income is still one of the least popular mainstream insurance policies purchased.

The Reasons for not having Income Protection Insurance?

  • Cost…the perception that the cost of premiums cannot be justified.
  • ‘It will never happen to me’ attitude to accidents and illness.
  • The Government will protect me through ACC and sickness benefits.

The Consequences of not having Income Protection Insurance?
Most New Zealand families live payday to payday;  80% of New Zealanders families cannot scrape together $10,000 in cash for an emergency without mortgaging something.  I have watched the bitter experiences of a number of my clients when their ‘secure’ world collapses after losing their income through accident or illness resulting in financial ruin that follows from not owning income protection insurance. The consequence that follow include:

  • Using your retirement savings
  • Asking your extended family for help
  • Having to access social welfare support
  • Using charities such as ‘Givealittle’ pages
  • Losing the family home

But we insure other less important things!
What continues to amaze me is that we insure things like our cars, boats, houses and furniture most of the time; yet without your ability to “turn up and play” there is no pay at the end of the week or month.

Income protection should be your first insurance purchase. Any other contract will lapse (be cancelled) if the premium is not paid and without income no premium can be paid.

Income Protection Insurance: The Basics
An income protection policy will pay you 75% of your pre-disability earnings up to the agreed sum insured (whichever is the lesser). ACC only covers 1 of the 8 long term (longer than 90 days) loss of earnings situations. 7 out of 8 are through sickness.

Having your own income protection plan provides you and your family with the knowledge and security that there will always be a guaranteed income available to you until your retirement or until you are medically cleared and able to return to work.

Taking Stock of Your Own Affairs
Personal responsibility should be the major priority of every person in New Zealand. It is not the responsibility of the Government or the taxpayer to look after you and/or your family because you failed to manage your own affairs.

Without income you cannot fund your living expenses, insurances, mortgages, food and clothing, children’s education and sporting and entertainment costs, and the other basic commodities of life.

Take the test….. what would happen if you suffered a major illness and you could not work for a period of;

  • 6 months
  • 1 year
  • 2 years
  • Not at all again prior to retirement

If you failed the test and you found you could not survive without income, contact me to discuss protecting or reviewing your most valuable asset.

Email: Kevin@ksl.co.nz
Mobile: 021 2404540

Regards
Kevin