Your ability to get up and go to work each day is easily taken for granted and often undervalued. As a 45 year old with an earning capacity of $60,000 per annum, your earning capacity over the next 20 years is in excess of $1,200,000.
We insure our cars, our houses, the goodies we have in our houses, yet overlook our greatest asset – the ability to generate an income. This enables us to clear our mortgages, live the life style we want to live and hopefully plan for our retirement.
A 6 to 12 month period out of work in the prime of your life can have a devastating effect on your household’s finances and your financial aspirations. According to the claim statistics of a leadingNew Zealand insurer the average duration of all claims is 15 months, a long time to be out of work.
What can you do to protect yourself?
Regular exercise, a healthy diet and good work life balance all play a huge role in maintaining good health and protecting your earning capacity. Unfortunately diseases such as cancer, strokes, coronary disease and stress can affect any of us, and at times without warning.
This same insurer states that the greatest single cause of disability is muscular and limbs which accounts for 48% of their claims. Another leading cause of claims is depression accounting for 11% of claims. Enjoying a good level of fitness can go a long way towards alleviating these types of medical issues.
People often think that “it won’t happen to me”. In the event that it does, they feel confident that they have choices:
“We will manage on my partner’s income” – are you managing well now on two incomes?
“I’ll get ACC” – only if you have an accident and even then there may be a debate
“We’ve got savings” – how long will they last?
“We’ll go to the bank” – will the bank lend you money if you are not working?
“Our family will support us” – how realistic is this and for how long?
Enjoying physical fitness is great – knowing you and your family will remain financially fit regardless of what comes your way will also provide you with security and peace of mind.
If you want to know what your options are in terms of protecting your income and would like professional, down to earth advice I am happy to assist you.
You can contact Lynda on 021 667 934 or lynda@taylormadeinsurance.net.nz