How would you pay your mortgage if you lost your job because of illness?

How would your family pay for the mortgage if you suddenly passed away?

Life, Trauma, Total Permanent Disability and Income Protection insurance is an essential part of every financial plan, enabling you to protect what you’ve worked hard to achieve. Take a moment to consider the repercussions of serious illness, injury and even death. Could you and your loved ones afford the necessary medical treatment? Maintain the mortgage repayments, and keep up with bills and daily living expenses?

The reality is that the unexpected does occur – and when it does, it pays to be protected.

Why invest in life and income protection insurance?

If you would like the peace of mind knowing that despite what happens to your health, your future income will be guaranteed and your family will be financially secure then investing in life and income protection insurance is a no brainer.

Below are some important facts to consider;

• Cancer was the leading cause of disease burden in 2003, accounting for 19.4%
• 1 in 3 Australian males and 1 in 4 females can expect to be diagnosed with cancer
• An estimated 108,000 new cases of cancer will be diagnosed in 2008 – a 10% increase since 2004
• 1.4 million Australians – or 6.9% of the population – have a disability associated with a cardiovascular condition
• 1 stroke event occurs in Australia every 12 minutes
• Cardiovascular disease accounted for 35% of all deaths in Australia in 2005
• 31% of the population – or more than 6 million Australians – are affected by a musculoskeletal condition
• Over 1.5 million of the Australian population have a disability related to diseases of the musculoskeletal system or connective tissue
• Just under half the population with an arthritis-associated disability are aged 15-64
• 11% of the population have a long-term mental or behavioural health condition
• 1 in 20 Australians are estimated to have a disabling psychiatric condition. Almost half of these have severe or profound core activity limitation, requiring help with self-care, mobility or communication.
• 36% of the overall disease burden for Australians aged 15-44 is due to mental illness
• In 2005-06, psychiatric conditions accounted for a hospitalisation rate of 1567 per 100,000 people
• Medications for the nervous system were the most commonly prescribed drug type in 2005-06, representing 21.7% of prescriptions written by general practitioners
• With symptoms generally developing between ages 20-40, Multiple Sclerosis is the most common chronic central nervous system condition among young Australian adults
• Nervous system conditions account for 5.1% of male deaths between ages 15-24, and 5.4% of female deaths between ages 15-24
• Nervous system conditions accounted for 3.7% of all registered deaths in 2006.
• The total health expenditure on nervous system conditions was over $2.5 billion dollars in 2005-06
• Injury is the leading cause of death for Australians in their first half of life
• In 2005-06, 71% of all deaths for Australians aged 15-24 were due to injury
• 2.1 million Australians have a long-term condition due to an injury
• In 2005-06, accidental falls accounted for 20% of all fatal injury in Australia , and a hospitalisation rate of 618.5 per 100,000 people
  
  (Australian Institute of Health and Welfare, June 2008)

The risk is real
Every Australian is exposed to the possibility of misadventure. Given the above statistics the chances are you will suffer from injury, cancer, cardiovascular disease, or injury in your lifetime.

While insurance can’t prevent illness or injury from occurring, it can help you manage and even

eliminate the financial consequences of these events.

Remember your income is your biggest asset
Your income is your biggest asset and should be insured, just as you would insure your car.

Why do the majority of Australians insure their car which is a liability yet leave their biggest asset, that is your future earnings capacity to be at risk if you suffer from serious injury or illness?

Just as you insure your car and other liabilities you should be insuring your assets like your income, your life, and even your assets.

Don’t just leave your and your families financial future to chance….

Some excuses many uneducated people use to avoid investing in life and income protection insurance.

1.       It's too expensive

Insuring your income and life is usually less than the premium you pay to insure your car.

What is expensive is medical bills, ongoing support and meeting mortgage repayments especially when you are injured and can’t work, or even worse, if you are never able to go back to work due to an injury or disablement. This can be avoided by simply having the appropriate cover.

The majority of the insurance premiums can be paid from your superannuation. That’s right, insurance can be structured to ensure the premium does not come out of your own back pocket.

2.       I’m healthy. I don’t need it.

Many people fail to realise that insurance is not something readily available for everyone who wants it. The best time to take out insurance is generally when you are in good health. As you get older, you may begin to suffer health issues which could make you ineligible for cover, incur exclusions on your policy or incur higher premiums due to loadings. Of the working population, one in six men and one in four women are expected to suffer a disability from the age of 35 to 65 that causes a loss of 6 months or more from work. Can you afford to take a chance that you won’t be the one in six men or one in four women?

Today, there is a range of life insurance products in the marketplace that cover certain needs and therefore it is important to speak to an insurance specialist to identify exactly what your needs are in the event of your death, total and permanent disablement or critical illness . Once your needs have been identified an insurance specialist can look into cost effective ways to structuring your insurance such as within Super where possible without compromising the effectiveness of the insurance strategy.

For more information please contact your JB Global Investment Manager or email info@jbglobal.com.au