Six Stones – 2. Case Study – Louise’s Insurance

The next step is to work out just how much it will cost Louise to use insurance to Transfer this exposure to somebody else.

Six Stones – 2. Income Protection Part 2.

This can mean that while you were paying for $750 a month of cover, you’re really only entitled to $525 per month.

This means that regularly reviewing your policy – every few years, or at least when you have a change in your income – is critically important, especially for Income Protection.

Six Stones – 2. Income Protection Insurance

Think of Income Protection as the cousin of TPD insurance. If you’re ‘disabled’, you will receive a payment every month until either you can return to work, or you reach the end of the policy’s benefit period.

Six Stones – 2. Trauma Insurance

But the ability to access a lump sum of money in the worst time of your life – to cover the bills, let you take time off work, pay for an experimental treatment – can transform your experience of an awful situation.

It provides you with options and some element of control. I believe it’s a critical part of a responsible person’s risk management plan and I encourage you to look into it as soon as you can.

Six Stones – 2. TPD Insurance

This is the framework through which the insurer will assess your claim.

If you meet these – and given the millions of dollars paid out each year, people do – then the insurer will pay you the money you need to get deal with such a life-changing event.

Six Stones – 2. Life Insurance

To be blunt – it pays when you die.

Which is why we call Life Insurance one of the simpler types: the claim event is pretty black-or-white…

Six Stones – It’s All Gibberish – Pt. 2

Put another way – don’t keep secrets from the insurer, don’t lie on your application form and don’t be creative with your answers.

Be honest, answer the questions truthfully and let the insurer make their decision.

Six Stones – 2. It’s All Gibberish

Insurance shouldn’t be seen as a potential windfall, or a lottery win, because it’s not. Instead, it’s a tool to help you get back on to the path you were on before everything fell apart.

So if you were on track to clear the mortgage, have the school fees paid and retire at 65 – your insurance should be designed to make sure this still happens.

Six Stones – 2. Accept & Transfer

Most people know, when asked to think about it, that they’re Accepting the likelihood of these events happening. But very, very few ever acknowledge that they’re also Accepting the consequences.

Six Stones – 2. Let’s Talk About Death

Now we’re going to get personal. Bear with me.

Imagine, if you can, that you went to sleep tonight and didn’t wake up in the morning.

Push past the emotional weight of this idea (it’s hypothetical and, I hope, not too resonant of something in your past) and focus on the relatively banal issue of the financial impact.