With house prices and personal debt levels continuing to rise, many of us have considerably larger home loan repayments and financial obligations than ever before.
But what happens when you lose your ability to earn an income, through illness or injury?
Anything that affects your ability to earn will affect your lifestyle. And your financial responsibilities don’t stop just because your income has. On average, New Zealand families have access to enough money to provide only six week’s worth of income. After that, if they no longer have a source of income, they start to experience serious financial problems.
Statistics tell us that there is a 32% probability of a male becoming disabled for six months or more, before age 65, and this increases to a 37% probability for females*.
Ask yourself – if you were disabled tomorrow, how long would your savings last?
How long could you pay your bills, support your family and meet your day-to-day expenses?
If the answer is “not long”, then you need to consider protecting your ability to meet your ongoing expenses, regardless of any future changes to your health.
The good news is that these risks can be easily offset through the use of income protection, home loan cover, specified critical illness cover or a combination of these. Your Financial Adviser can provide you with some specific advice on the most appropriate cover for your situation and your budget.
If you’d like to check that your family is adequately covered or if you’d like more information on your options, please contact us to arrange a no-obligation meeting with a Financial Adviser.
*Source: General Cologne Life Re Australia (2000), State of play of disability insurance in New Zealand 1995 – 1999.