Can you believe it’s 2018? Actually, 2018 is nearly a month down, which is even scarier. I’ve talked before about how the first month of a new year can prompt people to book in to get their finances sorted out asap. But it turns out that major milestones are actually the main reason people take out life insurance.
It’s true. Research* shows that the five life events that most commonly lead to Australians thinking about or buying a life policy are:
1. Marriage or divorce
2. Buying a home
3. Having a child
4. Emergency experienced by a close friend/family member
5. Personal illness or injury
This is because all of these things make us feel more responsible. When we’re young we talk about growing up and getting married. Buying a house is a big financial responsibility. Starting a family is something you do when you’re ready. Serious illness is a thing that happens to old people.
Which is why when we reach these milestones we are more likely to think about our finances and our future – which is what life insurance is designed to protect. Even though you might be really busy with organising your wedding or painting the nursery, I recommend you take five minutes to book an appointment to talk to an adviser about getting cover. The risk is that if you don’t do it while you’re in the right mindset you will keep putting it off, until the last two things on the list above inevitably happen.
The last two items in the list are actually pretty scary – because when illness or injury happens it’s potentially too late to get the cover you really need. These are the reasons why you need insurance in the first place. If you are the one who has had the illness or injury it might be harder to get cover or more expensive because you are more of a risk to the insurance companies. Or worse still, you may not be able to get cover at all. Better to have something in place before you need it.
I’m not saying these are the only reasons to take out a policy, but it is important to take the time to really think about how you will manage your new responsibilities if you couldn’t work. And if you already have cover, these are also the times to come in and have a chat to make sure your cover is still right for your circumstances.
If you want to talk about your financial responsibilities, give me a call today.