Illness doesn’t discriminate | The relevance of personal insurance


While death and illness is something nobody likes to think about, the sad fact is around 4,400 Australian parents with dependent children die each year and many more become sidelined as a result of illness or injury.

I started my career working for one of Australia’s leading insurers.

At the time, I was just like most other young women and didn’t put much of an emphasis on the relevance of personal insurance in my life. My perception was that I was young and healthy and had little debt or assets so insurance was not for me. How different my view is now!

Time after time I have seen young professionals, young parents, and young business owners being forced to sacrifice their lifestyle, and their future plans due to sickness or injury.

I’ve realised now that insurance is not only for the wealthy, already financially established. It’s for me, for my friends, for everyone starting a family and working towards a financially secure future for their children.

Unless you are independently wealthy, the only way to safeguard your family’s financial wellbeing is through a good personal insurance plan.

I became very passionate about this and found the statistics around underinsurance in Australia disturbing.

What really hit me was that women, particularly mothers, were among the most underinsured in the country. A family losing a non-working parent may find the cost of home help and child care crippling and it may even force the surviving parent out of the workforce.

The financial value of mothers, whether earning an income or not, is too often overlooked.

If a nominal value of $40 per hour was placed on the unpaid work around the home, a housekeeper employed to do the same amount of work would cost around $1,350 for a seven day week (that’s a staggering $70,200 a year).

Yet only 50% of female parents hold life insurance policies. These are mainly through their super, and usually with low default levels of cover.

And only one in five full-time working mums have enough insurance to cover their income for three years or more. This is well short of recommended guidelines.

Life is full of surprises, good and bad.

Insurance will never compensate for the loss of a loved one or replace their role in the family. But it can help reduce the financial (and emotional) burden. Insurance can provide the capital to ensure you and your family have choices.

It’s my mission to educate women on the importance of protecting themselves, their families and their businesses. I provide real, relevant and unbiased information on the options and strategies available to them.

When presenting a Makeover your Finances workshop to a group of young motivated professional women last month I asked the group to each tell me what their ‘finish line’ looked like, what success and happiness was in their eyes. Not surprisingly, family was on the top of everyone’s list.

That’s why I love meeting with groups of wonderful women. I love facilitating educational sessions on family protection, business succession and estate planning… Because these discussions and taking action in this area protects what matters most.


Article by Belinda Sirio, Insurance Specialist at Wealth Enhancers

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Disclaimer: Information contained within this article is of a general nature. Do not be rely upon it when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.