Why insurance is important: real benefits for you and your family
You insure your car and your home. But nothing is more important than your life and your ability to make a living. So it makes good sense to insure your greatest asset – you!
As we move through life, find a partner, raise a family, and maybe start a business, the importance of insurance in a long term plan increases.
That’s because insurance is all about providing a financial safety net that helps you to take care of yourself and those you love when you need it the most.
Five reasons why insurance matters
Why is insurance important? Let’s look at five key reasons.
Protection for you and your family
Your family depend on your financial support to enjoy a decent standard of living, which is why insurance is especially important once you start a family.
It means the people who matter most in your life may be protected from financial hardship if the unexpected happens.
Reduce stress during difficult times
None of us know what lies around the corner. Unforeseen tragedies such as illness, injury or permanent disability, even death – can leave you and your family facing tremendous emotional stress, and even grief.
With insurance in place, you or your family’s financial stress will be reduced, and you can focus on recovery and rebuilding your lives.
To enjoy financial security
No matter what your financial position is today, an unexpected event can see it all unravel very quickly.
Insurance offers a payout so that if there is an unforeseen event you and your family can hopefully continue to move forward.
Peace of mind
No amount of money can replace your health and wellbeing – or the role you play in your family.
But you can at least have peace of mind knowing that if anything happened to you, your family’s financial security is assisted by insurance.
A legacy to leave behind
A lump sum death benefit can secure the financial future for your children and protect their standard of living.
The following scenario is illustrative only to demonstrate the importance of insurance and is not based on an actual event.
Tony (34) and Karen (33) recently upgraded to a new home to allow their twin boys Nicholas and Rocky (aged 4) more room to play.
This also meant taking on a bigger mortgage on one income, as Karen is a homemaker. To protect the family, Tony decided to take out Income Protection Insurance.
During a simple Saturday afternoon game of backyard cricket with the twins, Tony tripped and broke his leg.
What appeared to be a simple break was more complicated than initially realised and Tony required several reconstructive operations followed by physiotherapy.
It meant Tony was out of the workforce for over six months, and while his employer was sympathetic, Tony only had two weeks of sick leave owing to him.
Thankfully, Tony’s Income Protection insurance meant he received a stream of payments equal to 80% of his regular wage (including super).
The couple needed to tighten their belts a little until Tony was back on his feet but they were able to keep up with their home loan repayments, which would not otherwise have been possible without their Income Protection cover.
“I have been with Capstone for over three years and have found them refreshing to deal with. They help you become the best version of your business. I can wholeheartedly commend Capstone to any planner.”
Bronson Financial Services
“At a time of industry upheaval, the support of Capstone has been a godsend. Everything they promised they delivered.If you are looking for a new licensee you cannot beat the Capstone service offering."
Canyon Financial Planning
“Capstone Financial Planning should be at the top of your list for a Licensee. Grant and his amazing team give a down to earth and personalised approach to supporting practices.”
“Capstone have some of the highest quality individuals in their team and it’s a pleasure to benefit from their insight and assistance. We really can’t recommend them enough to anyone considering a licensee.”
Strategic Retirement Solutions
“I recommend Capstone to any adviser seeking to 'go out on their own'. They are a fabulous licensee!”
Everalls Wealth Management
“With Capstone I can operate my business free from conflict. They have no in-house products, a flexible APL, and an extensive list of SMA solutions. I recommend Capstone highly.”
“I can highly recommend Capstone for planners seeking an independent licensee that’s not in your face but provide quality support services. Their service and support is second to none and has allowed us to concentrate on providing our clients with a premium level of service.”
“Having been with Capstone for a number of years, one thing that really stands out is their willingness to help and can do attitude. These are qualities we really appreciate.”
“The team at Capstone are all genuinely really good people. They are remarkable with their service culture. They really do care what you think, and they are genuine about our joint success into the longer term.”
Benchmark Financial Planning
“During times of change, it has been reassuring to be with a licensee that regularly engages with advisers and takes feedback seriously.”