Movies can serve as cautionary tales and one of my favourite examples is the 1970’s film, Deliverance.
You probably assume I’m talking about the danger of a wilderness journey where you’re relentlessly pursued by inbred hillbillies!
Well that’s the most obvious warning to heed, but there’s a slightly more subtle message you can derive.
At the beginning of Deliverance, Burt Reynolds’ character, Lewis, derides the thought of having insurance.
“There’s no risk,” he states. Apparently living on the edge, with little protection makes him feel more alive.
By the end of the film, Lewis lays in traction, nursing a compound fracture of his leg.
That’s months off work, costly rehabilitation and thousands of dollars in lost earnings.
So much for living on the edge!
Apply that to yourself and how well do you think you’d cope financially?
Whether through inattention, being badly informed, or just plain arrogance (think Lewis) many Australians are underinsured.
Some people at least have life insurance through their superannuation, yet it is often set at the default level, with coverage being very low, with little consideration to personal circumstances.
In terms of total permanent disability coverage, 60% of Australian workers wouldn’t be able to support their families for longer than a year if they were disabled.
Others, through misinformation, are completely unaware of their risk.
Myths abound that the government bails you, or your family, out in the case of death, or injury and illness.
Nothing could be further from the truth!
Debts don’t disappear and bills don’t stop coming. In the advent of the worst happening, often it’s the family home being sold to make ends meet.
You’d be ill advised to be as cavalier as Lewis. A trauma is debilitating enough, but without adequate insurance the accompanying financial uncertainty only increases the misery.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs. Think you need a lawyer for a superannuation claim? Think again! We might be Australia’s best financial advisor. Want to learn more about the value of financial advice?
