What is your most important asset?

Your income is your biggest asset and should be insured, just as you would cover your home or car.

Did you know that:

• 71% of consumers have motor vehicle insurance! According to the National Motor Vehicle Theft Redution Council, a vehicle is stolen every eight minutes in Australia.
• 60% of consumers have contents insurance! The Australian Institute of Criminology report for April 2009 noted that in Australia, someone is burgled approximately every two minutes.
• 54% of consumers have building insurance! The Australian Bureau of Statistics Australian Social Trends 2000 report noted that in Australia each year there are over 10,000 house fires.
• 16% of consumers have life insurance! The Australian Institute of Health and Welfare cancer incident update statistics in December 2008 noted that in Australia each year, one in three men and one in four women will be diagnosed with a cancer in the first 75 years of life.
• 6% of consumers have income protection insurance!  Of the working population in Australian, one in six men and one in four women are expected to suffer a disability from the age of 35 - 65 that causes a loss of six months or more from work. [statistics from the Institute of Actuaries - Table IAD 89-93 - white collar males and females].
• 5% of consumers have TPD protection!  The Australian Institute of Health and Welfare December 2008 report notes that around 2.5 million Australians aged below 65 are living with a physical disability.
• 3% of consumers have trauma protection!  A reprot from General Fologne Life Re Australia in 2002 noted that two out of five Australians will suffer a critical illness before they reach 65.

Of the above statistics, one of the main points is that only 6% of consumers have income protection insurance cover.  If your income stopped today, who would pay the bills?  Do you have surplus in your savings account?  Would your partner provide the mssing income?  Your parents?  You should complete the ten second insurance check below to see how you are protected at the moment.

If you could not maintain your lifestyle without supprot during illness or injury, what would you do?

As your circumstances change, it is likely that your personal insurance requirements will as well.  CommInsure have provided the following insurance guide to life stages - this is a good example of when cover might be considered.

Stage 1:

• wealth creation
• starting career
• no dependents
• short-term debt
• few financial commitments

Stage 2:

• wealth creation/building
• building career
• long-term debt through mortgage
• marriage and children

Stage 3:

• wealth building
• career-focused
• reducing mortgage
• retirement planning

Stage 4:

• wealth maximisation
• preparing for retirement
• financial security a primary concern
• low debt
• fewer family commitments
• focus on investment growth

Stage 5:

• wealth protection
• income reduces
• health a primary concern
• finance lifestyle with savings

Having the right protection for all of your assets, including the most important assets - yourself and your income - will help minimise the impact of a traumatic event occuring to you.  If you would like to discuss asset protection with us, please contact our office on 02 9894 9155 or email to taggart@taggartgroup.com.au.  We can provide you with assistance on general insurance or life insurance matters.

 Information in this article sourced from CommInsure income protection and life stages flyers issued 22 March 2010.