LIFE and DEATH Decisions

It’s the month of insurance and the reason I’m focusing on this is because of the increased cost of living and the need to have some coverage when looking after our health and wellbeing as well as protection against risks.

When thinking about insurance we often only think about health insurance, car, house and contents too. These are obvious but, if you are self employed you may not have thought about the other types of insurance that protect you in the event you are injured, sick or unable to work such as income protection insurance, trauma and life insurance.

So what are these types of insurance?

Life insurance pays a lump sum of cash to a nominated beneficiary in the event you either pass away or are diagnosed with a terminal illness. It’s a safety net for your loved ones by protecting your life for your partner and/or children.

Income protection insurance may pay a death benefit in the event you pass away, however, it’s main purpose is to insure your income, not your life. This insurance can help if an illness or injury isn’t life threatening but will prevent you from working and earning an income.

Trauma insurance pays a lump sum if you suffer a critical illness or serious injury. The type of illness covered is cancer, a heart condition, major head injury or stroke but does not cover mental health conditions.

So, if you have a partner and children and are the main breadwinner or you rely heavily on your income, having one or all of these insurances in place can provide peace of mind for you and family in the event that the unthinkable occurs.

Obviously, we always hope and pray that nothing bad happens but it is more common than we think.

If you need help to put together a budget to accommodate these or any other expenses, click here to download my free budget template, or sign up for my Money Worries Gone workshop, a 3 hour practical workshop where we tackle a budget head on.