Think HBR

Insurance – don’t leave it to chance!

Risk Man Umberella
Ian Morante
NSF Super
The logic may seem surprising, but while most Australians insure their cars, homes and other assets, many forget to protect their most important asset – themselves and their ability to earn an income.
If you’re in that position yourself, it may be worth considering some of the following questions.
Do you need insurance cover at all?
You most likely need life, disability and/or income protection insurance cover if:
• You or your family need an income to cover day to day expenses;
• You have debts; or
• You support someone financially.
Depending on your personal circumstances and stage of life, not having the right type of insurance, or enough cover, could have a major impact on your standard of living or your family’s financial position.
For younger people, consider whether you’re in a position to rely on parents, friends or extended family in the event of an accident or poor health, or whether you’d be prepared to sell any assets you may have to cover any loss of income.
For people with families or those a little older, consider whether you’d have enough cash, or be prepared to sell property or investments regardless of market conditions in the event of longer-term ill health or loss of income. How would that situation impact your lifestyle, retirement goals, and other family members?
If you’re concerned about any of those things, then it’s worth assessing your current arrangements and getting some licensed financial advice.
How much cover do you need?
The amount of cover you need is dependent on your own circumstances as well. A number of factors will need to be considered when deciding on the level of insurance cover you need, including;
• What debts would you like or need to pay off?
• What additional amount would you like to leave your family to help meet their ongoing living costs?
• Do you already have existing insurance?
• Do you have any assets that can be sold quickly if required?
Protecting yourself and your ability to earn an income isn’t a ‘set and forget’ proposition either - as your life and circumstances change, so will your insurance needs.
Common life events like marriage, having children, significant changes in salary, or taking out loans should trigger a review of your insurance arrangements, to make sure they are still providing adequate cover for your current needs.
The simple message is that regardless of your circumstances, getting your insurance arrangements right and reviewing them regularly is important – and may provide just the right support when you need it most.
This article was prepared by the team at NSF Super, located in Charlestown.
Call the team on 1800 025 241 or email if you would like any more information on their insurance options.
This article contains general information only and has been prepared without taking into account your financial objectives, situation or needs. It may, therefore, not be right for you. Before you make any investment decision, we suggest you consult the relevant Product Disclosure Statement and/or seek licensed financial advice.
Ian Morante Ian Morante

Ian Morante is CEO of Nationwide Super. Ian has over 25 years’ experience in the superannuation industry and holds a Bachelor of Commerce from Newcastle University, a Diploma of Financial Planning, a Diploma of Financial Services (Super), an Advanced Diploma of Financial Services (Super) and is a Fellow of the Australian Institute of Superannuation Trustees.