Do You Have A Mortgage? Young Children? Guess What …. You Need Insurance!


If I had a dollar for each time the words ‘I don’t need personal insurance’ were mentioned, I would be relaxing on a tropical beach right now instead of writing this blog.

What scares me the most is that these words are coming from people who are financially responsible for their family or business!

It’s vital that we don’t associate a lack of enthusiasm or need for insurance with a genuine belief that it isn’t necessary!  The majority of the people that I come across as an adviser are educated & intelligent.

Even so, I find myself having to paint a picture of what can go wrong in order to convince them of the benefits of personal insurance.

Here’s an example.  Mr Smith, “I take it your income or ability to earn an income is important to you right now?”  “Well yes, I need my income in order to pay our bills & go on holiday each year”.

Mr Smith, “If you got hit by a bus tomorrow what would the financial impact be on your wife & children?”  “Well … am … I haven’t really thought about it”.

“Mrs Smith doesn’t work so I guess she would have to move in with her parents as the home would have to be sold.  Our parents may also have to look after the children as I assume my wife would have to look for a job!”

Why as an adviser do I have to go through this process especially since it’s in the clients best interest?

When you buy a new car does someone need to explain the benefits of car insurance to you? 

OK, so you are driving on the road & someone runs a red light & slams into the side of your car … how are you going to pay for this damage?

Of course not!  It’s common sense to ensure that we have proper insurance for our car & home.  Why does this not apply with personal risk insurance?

Is your ability to earn an income or the financial security of your family less important than your home or car?  I hope not!

Don’t think for a second that you are any more special than the average person on the street affected by serious illness, injury or premature death!  I know I’m not!

I guess one of the disadvantages of my job is being exposed to the truth & experiencing through my own clients the impact that serious illness, injury & premature death has on an individual or family.

I would lose the shirt off my back before cancelling my life, trauma or income protection cover!  As a risk adviser I haven’t done my job properly unless my clients share the same view.

Don’t be mislead also into thinking that there is as safety net there for you in case things do go wrong!

“I’m covered through my super fund”  Are you?  Do you have cover within your fund?  What does it cover you for?  How much will you or your family actually receive?

“I have private health insurance”  Private health insurance only covers you against medical expenses associated with your illness or injury. 

Your insurance may also not cover the total cost of your treatment or rehabilitation so there may be a gap.  It definitely won’t cover your bills, debts or replace your income!

“The government will look after me” If your game plan is to rely on government payments to get you out of trouble financially, good luck with that!

Even if you are lucky enough to qualify for benefits there are waiting periods involved & the benefits themselves are inadequate to survive financially.

The disability support pension for an individual is about $672 per fortnight or $17,470 per year. How will you or your family survive on this amount?

There is only one person that can guarantee that all your personal insurance needs are in order & that you & your family are adequately protected financially!  That’s you.



Tom George
My role as a Life Risk Adviser involves educating, assisting and providing advice in the area of personal insurance. Follow me on Twitter | Linked In Profile

One Comment on "Do You Have A Mortgage? Young Children? Guess What …. You Need Insurance!"

  1. May I just say what a relief to uncover somebody who truly understands what they are talking
    about online. You certainly understand how to bring a problem to light and make it important.
    A lot more people really need to read this and understand this side of the story.
    I can’t believe you are not more popular given that you most certainly possess the gift.

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