Why Should I Have Insurance?

Sometimes things go pear-shaped. If an earthquake strikes, our house burns down, our car is in a crash or we fall ill, we might be faced with large costs that we can’t afford.

Someone long ago worked out that we could take cover from the storms by not having to take on all the risk by ourselves. We can help each other by spreading the risks among us as a group, and that’s what insurance does.

What insurance do I need?

We all probably need some kind of insurance, but not everyone needs all the different kinds.

How much insurance we need will depend on our own circumstances and attitudes. It’s easy to buy too much insurance. It’s just as easy to not buy enough.

When considering getting insurance we need to weigh up the risks of not having the insurance against the costs of buying it. Ask these three questions:

  1. What is the risk I would be insuring against? This could be death, a fire at home, or the car getting stolen. Or getting sick and not being able to work.
  2. What are the chances of it occurring? There’s probably a small risk of a fire in your home, but it will cost a lot if it happens. The chance of your car being damaged or stolen is much higher, but the costs probably won’t be as high as losing your home.
  3. What would happen? Would your family be able to pay for funeral and legal expenses in the event of your death, and how would they manage without your income? If there was a fire in your home, would you be able to replace the house (if you own it, that is) and all your possessions, or would you lose them completely?

Bottom line

If you can’t afford for something to happen, you should seriously consider taking out insurance.

 Insurance is important when we’d be badly affected by a loss – even one that is not very likely to happen.

Your ability to earn is your greatest asset, losing this asset even for a short term can have long lasting financial consequences.

Sickness injury or disease, medium or long term can stop you from working for a long time. If you are not working you will have no income. Sickness can happen at any time, and without any warning. If you are sick and cannot work, how will you pay the mortgage or rent ? What about the monthly bills? How would you put food on the table?

On an income of $50,000 your lifetime earnings could easily exceed $2m while your major assets (house, contents and car) may only be a quarter of that.  And, of course, you can’t maintain your lifestyle if you lose your income for any reason.

There is a 32% chance of a Male and 37% chance of a Female being unable to work for at least 6 months due to sickness or accident at some point during their working life

So…. “I’m healthy right now, I think I’ll get this insurance later” Are there any guarantee that you won’t get a sickness that prevents you from working for a period?

Ready to get Started?

For more information feel free to contact our Insurance Advisor, Sarah Bately.

Contact Sarah >

Latest News

Miller, Scott
27 May 2024

Published by Scott Miller

  • Great experience chatting with Sarah about our insurances. She’s very knowledgeable and explains everything clearly, always makes sure that we have all the information to make an informed decision about how and where is the best place to put our money. Also helps that she’s absolutely lovely and very easy to talk to
    Sarah Martin - 22 May 2024
  • Scott has been absolutely incredible. I was initially hesitant to use a broker but I am beyond glad I did. Prompt, insightful, and reliable - will be using his services into the future.
    Kaleb McCall - 17 May 2024
  • We have never used a Mortgage Broker in the past and Scott Miller was amazing and made our refinancing journey very simple and straightforward. He is very knowledgeable and professional; would highly recommend Advanced Mortgage Solutions to anyone.
    Many thanks Scott.
    Alison and Colin Philip - 10 May 2024
  • I chose to work with Greg to help me buy my first home and I'm so glad I did! I honestly can't recommend him enough, he made the whole process so easy and stress free, helped me every step of the way to understand what I needed to do next and a lot of the time was doing all the work for me. Such an absolute pleasure to deal with, I sincerely appreciate everything so much and will be referring everyone I know your way!
    Cara Eve - 02 May 2024
  • For anyone considering or even contemplating a broker + advisor combination, look no further! I consider myself loyal to those who are strong to their word, provide genuine help and are able to put it in plain English so I can make an informed decision based on my circumstances.
    Leith Skinner - 30 April 2024