What should you know?
Imagine you own 4 assets, each with different values.
One is worth $3 million,
Another is worth $750,000,
A third is valued at $100,000,
And the last one is worth $50,000.
Which asset do you think is the most important to insure and protect?
It’s likely that you picked the $3 million asset as the most important to insure—and you’d be right. The shocking truth is that many people do the opposite: they insure their lower-value assets but overlook the most important of all.
Here’s what the numbers represent:
$50,000 = Your car
$100,000 = Your belongings
$750,000 = Your house (mortgage)
$3 million = Your future earnings
Why should you care?
If you’re still in your working years, your future earnings are likely your biggest asset. This represents the money you will earn throughout the remainder of your career, including your salary, bonuses, share awards, and other financial benefits.
For example, if you earn $150,000 per year, your inflation-adjusted earnings over the next 15 years total around $2.8 million.
Now, imagine if those earnings suddenly disappeared – what would happen?
How would your family replace your income?
Would they be able to afford the life they have today?
Would your children have the same opportunities?
It’s not nice to think about serious illness and death, but it is necessary. Don’t leave it to chance or assume your existing cover is sufficient.
