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CHAPTER 4
Protecting your future and
planning for the “what ifs”
Most of the strategies we have discussed are long term in nature, so we
are talking about several years. We have a natural starting point and over
time we build towards the outcome we desire. Insurance is there to
protect us from the ‘what ifs’ – what if something happens and one of the
key parties isn’t able to get to that point?
In Australia, most people protect their car with insurance; they protect
their contents and their home with insurance. But they generally don’t
protect the income-earning capacity of the person or persons who
financed or bought those things. They don’t protect their income, and
quite often, when there is high exposure to debt, they don’t protect the
life or the financial interests of the people who are responsible for paying
those things out.
Key Point
Insurance is a natural means of providing yourself with protection at
a reasonably low cost. You are protecting the financial interests of the
people that you are ultimately leaving behind.
