Do you really need insurance? Thank goodness for income protection insurance!!

March 23, 2011

You may or may not have noticed that I have been absent for a while.

I have been struggling with some physical health issues for some months now and just before Christmas decided that I could no longer continue to work whilst dealing with such pain. After discussions with my health professionals I stopped work and claimed on my income protection insurance. Whew!! It was such a relief. At last I could concentrate on getting better and not be struggling to get more work so that I could continue to meet my financial obligations.

Over the years I have often complained about the cost of my income protection insurance and wondered at it’s value.  I had been well then of course. Now I just cannot tell you how it has eased my mind and my life. If I hadn’t had that regular money coming in I would not have been able to afford much of the physio, massage etc that I’ve had. Maybe not even all of the medication. I’d long been over my limits of my health insurance. More on that later.

I believe that without it, my recovery, which is still ongoing, would have been severely compromised. Most of all I would have had to rely on a sickness benefit, which, whilst better than nothing, wouldn’t have covered much. I know that I would have been constantly worrying about money and how I was going to pay my bills. I would have gone through much of my savings.

So what do I advise my clients. Firstly, I recommend they see an insurance broker or some other well qualified professional. However, in general terms I tell them the following:-

  • life insurance is for those who have dependents. ie if you were to die today (perish the thought) how would your partner and family manage?
  • Income protection is for those who rely on their health to generate an income. This particularly means the self employed.
  • Health Insurance is for those who want to have some say on the timing of elective surgery eg joint replacements, cataract surgery
  • House and contents is advisable. The Christchurch earthquakes have given many of us a salutary lesson.

I only make suggestions as I am not a professional insurance advisor but these recommendations are based on my own personal experience and that of my clients.

I do not make any suggestions on business or professional insurance.

Many people have unnecessary insurances and we have all heard the stories of those who do not have any!

Get some professional advice on your insurance needs. Do you have enough insurance? Do you think you have too much? I’d appreciate your comments.

I’m never going to complain about the costs of my Income Protection insurance again. I might complain actually, but I’ll keep on paying it; I know how valuable it is!

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