Five common misconceptions about insurance
It won't happen to me
When planning your financial path through life, it's easy to overlook, underestimate or even deliberately ignore the risk and possible impact of unplanned life events that could undermine your financial objectives and strategies.
An estimated 134,000 new cases of cancer are diagnosed in Australia each year, with that number set to rise to 150,000 by 2020. One in two Australians will be diagnosed with cancer by the age of 85.1
I'm covered by my super
Many super funds have basic cover for death and total and permanent disability (TPD). This may sound like an easier and perhaps cheaper way to get cover, but how much is enough and will you be covered sufficiently when you need it?
I'll be covered some other way
If the unexpected were to happen to you there is a possibility that you'll receive some sort of financial assistance from Workers' Compensation, the Government or possibly private health insurance but that doesn't cover you if you get sick or injured.
I'll use my accumulated super… or my savings
Having savings or a large sum of money in super, may seem like you've got a good safety net if you can't work for a while.
If you combine a lack of income with increased medical expenses, your savings could diminish quite quickly.
There are also certain conditions in place in accessing your super. You will have to meet conditions of release such as reaching age 65, or permanently retiring on or after your preservation age (55-60 depending upon when you were born).
It's too expensive
Insurance may seem like an unnecessary area to spend your money on when you have many other household expenses to cover each month. However, medical costs such as hospitals and doctors' bills can be expensive. Couple that with the lost income that could result from months, or even years, out of the work force and you can soon become overwhelmed and unable to keep on top of it. It helps put the cost of insurance into perspective.
To find out more about your insurance options or whether your current cover is adequate make an appointment with a Bridges financial planner.
1 Cancer Council Australia - Facts and figures 2017.