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Financial Newsletter Sunshine Coast

Welcome to Unique Financial Partnerships, keeping you up to date with all financial planning, self managed superannuation funds, tax minimisation, life insurance, on the Sunshine Coast and around Australia.

The information in this newsletter is current at the time of printing. Contact us for updates.

ARE YOU WASTING MONEY ON INSURANCE?


It’s the middle of the night and you’re jolted awake by extreme pain in your chest. You feel like the life is being crushed out of you ... you immediately realise you’re having a heart attack. Your partner frantically phones 000 and as you lay clutching your chest waiting for the ambulance to arrive, all you can think about is how your family will be supported if you die.

The pain intensifies.
Hopefully this will never happen to you, but what if it did? Take a moment to think about how your family's living expenses would be met if your income stopped tomorrow.
The average Australian household spends up to one-third of its gross income on mortgage repayments. Most of us would rely on our regular income continuing indefinitely in order to meet such an expense. And at this point we haven’t even got to putting food on the table.

Income protection (or "salary continuance") insurance policies usually provide up to 75% of your salary or business income in the event that you cannot work due to illness or injury. Of course, you might have sick leave, other compensation arrangements or perhaps a cash reserve to rely on for a while, but what happens when these run out?

TRANSFER THE RISK

Just like any other insurance, protecting your income is about transferring risk to someone else. By paying a premium each month, you have the security of knowing that should anything happen - your car is stolen, your home damaged by fire or you suffer a serious illness or accident - your financial loss will be minimised.

Interestingly, almost 90% of Australians consider the cost of car insurance worth having, yet only 6% of us insure our income.
And what about the apparent contradiction that when you buy insurance you hope you never actually have to use it? Does this mean it is a waste of money?

Why take that risk when having peace of mind is worth far more than dollars? Once you have insurance in place, you can get on with enjoying life, and if you do get sick or badly injured, money will be one less thing to worry about.

Futuro would like to thank Commonwealth Bank for contributing to this article.

DISCLAIMER:
This is general advice only. It does not take into account an individual's objectives, financial situation or needs, which are necessary considerations before making any investment decision. Opinions constitute our judgment at the time of issue and are subject to change. This report was prepared by Futuro Financial Services for the sole use of the intended recipient. Its contents should not be disclosed, in whole or in part, to any other party without prior consent in each case. To the extent permitted by law, Futuro, its employees, consultants, advisers, officers and authorised representatives are not liable for any loss or damage arising as a result of any reliance placed on the contents of this report. Please contact us directly should you have any queries in relation to the information provided in this Report on 07 3018 0400.

Disclaimer
All representations and information contained in Futuro in Focus are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific investment advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice. Futuro Financial Services will receive fees or brokerage from the provision of advice or placement of investments. You may, by contacting our Privacy Officer on 07 3018 0400 or by writing to Futuro Financial Services Privacy Officer GPO Box 942 Brisbane QLD 4001, request not to receive further editions of Futuro in Focus.