10 Mar The Number 1 Neglected Part of Your Financial Future
Let’s talk about you. Moving your way through life, working hard, raising your family and building your wealth to enjoy a comfortable, even luxurious retirement. Your kids are getting older, and before you know it, they’re married and starting families of their own.
You’re doing well, you’ve got some great assets built up, earning extra income from your share portfolio and you’ve got a couple of investment properties under your belt. The kids are growing up – one’s already married and the younger one is still at uni. You’ve in great health and everything is ticking along nicely.
You’re at home watching TV when you get a knock at the door. There’s two police standing there. You start to sweat that horrible, nervous, cold sweat. The officers tell you there’s been a serious car accident and your youngest child, the one at uni, has been seriously injured but all you can hear is a dull fuzz of words.
You arrive at the hospital to be told by doctors that it is a miracle your child is alive – to you this is great news! The other side of the story is that your child is likely to never walk again, they’re paralysed from the neck down. They’ll need care for the rest of their life.
What would you do?
You know what you would do. Everyone knows what you will do. You’ll do whatever you can for them. You sell the investment properties and sell the shares as a starting point, you’re going to need a lot of money to start off with…
But why should you have to do that? There is a simple solution to these sorts of scenarios and all it requires is a little bit of thought and understanding that risk management is for everyone because there are many ways a family can be financially and emotionally decimated other than by the demise of the main income earner(s). This is what we call ‘family planning’.
This particular case this is what we would call “P-plater Protection”. It will protect you and your children in the event of serious injury such as major head trauma, paraplegia, quadriplegia, being in intensive care and a raft of sicknesses. It may seem counter-intuitive to look at protecting your young adult children, because we all know they cost more than they bring in! But the reality is that at any age, most parents will sacrifice everything they can if anything were to happen to their children.
See the likely outcome in the story started above is that mum and dad’s retirement and future plans are destroyed. OK, that might sound selfish but mum and dad are all of a sudden having to scramble every bit of cash they can for their child in need, care for them constantly, struggling to keep their heads above water and unless they win the lottery their chances of seeing a comfortable retirement are very much reduced.
By mitigating the risk on the most risky age group for accidents and injuries (especially if you’ve got a young son – sorry chaps but it’s true), you are being smart about your future planning and hedging your bets on protecting your own financial future. Who really wants to get to 50 years old and have to throw away all their hard work when a simple and effective protection policy would have saved you financially and given more choices to your family and affected child?
Is it cost-effective? It’s relative of course but it might surprise you how cheap it is:
- $200,000 Accident and Sickness protection for a 21 year old male costs approx. $400 p/a
- $200,000 accident and sickness protection for a 21 year old female costs approx. $425 p/a
If this is something you want to explore it’s something we are big advocates of and would love to help you and your children secure your future and protection. Please call us on 02 9633 5530 or complete the contact form.