1 00:00:01,639 --> 00:00:04,400 Speaker 1: Welcome back to start Here, the very special mini series 2 00:00:04,440 --> 00:00:07,440 Speaker 1: within Sugar Mama's Fireplay where I answer your real life 3 00:00:07,560 --> 00:00:11,400 Speaker 1: questions with practical, empowering steps to help you get started 4 00:00:11,440 --> 00:00:15,680 Speaker 1: on your own financial goals and dreams. Now, today's question 5 00:00:15,800 --> 00:00:18,400 Speaker 1: comes from someone who sent me such a beautiful message 6 00:00:18,440 --> 00:00:20,880 Speaker 1: which I am so honored to share, so thank you. 7 00:00:21,600 --> 00:00:25,279 Speaker 1: She wrote, Heykennah, loving your new start Here series. I 8 00:00:25,320 --> 00:00:27,400 Speaker 1: feel like my weekends are filled with so much more 9 00:00:27,440 --> 00:00:32,879 Speaker 1: self discipline and motivation after listening each Friday morning. Anyway, 10 00:00:33,479 --> 00:00:37,159 Speaker 1: I have a question for you. Is income protection worth it? 11 00:00:37,800 --> 00:00:40,720 Speaker 1: I just got some quotes online through a comparison website, 12 00:00:40,760 --> 00:00:44,360 Speaker 1: and I'm worried or put my budget under pressure, especially 13 00:00:44,400 --> 00:00:47,640 Speaker 1: as I'm trying to pay off my mortgage. Do you 14 00:00:47,720 --> 00:00:50,760 Speaker 1: think I should have income protection even if it impacts 15 00:00:50,800 --> 00:00:55,600 Speaker 1: my budget and my financial mortgage free goals? All right, 16 00:00:56,080 --> 00:00:58,080 Speaker 1: First of all, I want to say thank you for 17 00:00:58,120 --> 00:01:01,760 Speaker 1: your kind words in the absolute world to me that 18 00:01:02,040 --> 00:01:04,880 Speaker 1: these episodes, these start Here and of course all the 19 00:01:04,920 --> 00:01:09,520 Speaker 1: other Sugarmumas Fireplay episodes are helping boost your motivation and 20 00:01:09,600 --> 00:01:13,000 Speaker 1: your discipline, and that is exactly what start Here is 21 00:01:13,040 --> 00:01:15,760 Speaker 1: really about. It's about breaking down what you need to 22 00:01:15,760 --> 00:01:18,120 Speaker 1: do to get started and making sure all of those 23 00:01:18,800 --> 00:01:21,280 Speaker 1: steps to help keep you moving in the right direction 24 00:01:21,520 --> 00:01:25,200 Speaker 1: are really small, but they strengthen your financial confidence and 25 00:01:25,319 --> 00:01:27,640 Speaker 1: you can actually see the shifts, the changes and the 26 00:01:27,680 --> 00:01:32,679 Speaker 1: breakthroughs with your own financial wellbeing and financial success because 27 00:01:32,680 --> 00:01:35,760 Speaker 1: I want you to achieve all of those goals and dreams. Now, 28 00:01:35,800 --> 00:01:39,360 Speaker 1: coming back to this question, this is a fantastic question 29 00:01:39,400 --> 00:01:42,119 Speaker 1: because it touches on something that many people wrestle with, 30 00:01:42,600 --> 00:01:45,400 Speaker 1: and that's like how to balance the cost of protecting 31 00:01:45,440 --> 00:01:49,960 Speaker 1: yourself with progressing towards your goals, particularly those debt free 32 00:01:50,000 --> 00:01:52,840 Speaker 1: goals that require our budgets and cash flows attention at 33 00:01:52,840 --> 00:01:56,000 Speaker 1: all times. So what we're going to do is unpack 34 00:01:56,080 --> 00:01:59,920 Speaker 1: this properly to help you get started. And as always, 35 00:02:00,160 --> 00:02:03,160 Speaker 1: please keep in mind that these episodes are always general 36 00:02:03,200 --> 00:02:06,200 Speaker 1: in nature, they're for your educational purposes, and of course 37 00:02:06,240 --> 00:02:10,320 Speaker 1: please always go and get financial advice from a licensed 38 00:02:10,360 --> 00:02:14,320 Speaker 1: financial planner when needed. Now let's get cracking with this 39 00:02:14,600 --> 00:02:19,519 Speaker 1: start here episode. Is income protection really worth it? Should 40 00:02:19,560 --> 00:02:37,519 Speaker 1: you be getting it? All? Right? Let's start with exactly 41 00:02:37,560 --> 00:02:40,920 Speaker 1: what income protection is and why it really does matter. 42 00:02:41,560 --> 00:02:45,520 Speaker 1: So income protection is one of the most important but 43 00:02:45,560 --> 00:02:50,760 Speaker 1: also the most least understood types of insurance. In very 44 00:02:50,840 --> 00:02:54,720 Speaker 1: simple terms, it's like a financial safety net. It pays 45 00:02:54,760 --> 00:02:58,440 Speaker 1: you a regular income, typically around seventy to say, seventy 46 00:02:58,440 --> 00:03:01,720 Speaker 1: five percent of your salary if you cannot work due 47 00:03:01,800 --> 00:03:05,120 Speaker 1: to an illness or like an injury beyond a certain 48 00:03:05,160 --> 00:03:07,640 Speaker 1: period of time. And it typically it takes two doctors 49 00:03:07,680 --> 00:03:10,560 Speaker 1: to sign off on this. And you know, the way 50 00:03:10,600 --> 00:03:12,639 Speaker 1: people think about income protection is it's a bit of 51 00:03:12,680 --> 00:03:15,440 Speaker 1: a personal backup plan. You know, if something happens to 52 00:03:15,480 --> 00:03:18,560 Speaker 1: you and you're unable to earn money for months or 53 00:03:18,639 --> 00:03:21,840 Speaker 1: even years. You know, you can't physically turn up to work, 54 00:03:21,960 --> 00:03:24,120 Speaker 1: or you can't stay at work. You know, maybe you're 55 00:03:24,160 --> 00:03:26,079 Speaker 1: confined to a bed, or you have to have lots 56 00:03:26,080 --> 00:03:30,079 Speaker 1: of intensive treatment. You know, an income protection policy will 57 00:03:30,080 --> 00:03:33,760 Speaker 1: pay you like a set amount each month to help 58 00:03:33,800 --> 00:03:36,080 Speaker 1: you be able to keep paying the bills, whether it 59 00:03:36,120 --> 00:03:39,120 Speaker 1: be rent or mortgage or payments, help pay for you know, 60 00:03:39,160 --> 00:03:42,880 Speaker 1: the essentials like food, you know, school fees, everything else. 61 00:03:42,920 --> 00:03:45,520 Speaker 1: And of course it's not the full amount of your income, 62 00:03:45,720 --> 00:03:49,040 Speaker 1: but it definitely helps, and it helps keep you afloat 63 00:03:49,120 --> 00:03:51,760 Speaker 1: to the best of your ability until you can actually 64 00:03:51,760 --> 00:03:56,040 Speaker 1: return back to work or until the policy expires. Now, 65 00:03:56,080 --> 00:03:59,480 Speaker 1: if you're wondering whether I have this income protection, you 66 00:03:59,600 --> 00:04:02,600 Speaker 1: better I do, and so does Tom. I took out 67 00:04:02,600 --> 00:04:06,520 Speaker 1: my income protection policy in my early twenties and I 68 00:04:06,600 --> 00:04:11,160 Speaker 1: still have that same policy today. And yes, Tom has 69 00:04:11,440 --> 00:04:13,800 Speaker 1: income protection as well. We actually both have the full 70 00:04:14,320 --> 00:04:19,880 Speaker 1: suite of personal insurances. And like us, people's biggest asset 71 00:04:20,320 --> 00:04:23,760 Speaker 1: is there income, their ability to actually earn money, to 72 00:04:23,880 --> 00:04:26,120 Speaker 1: make money. You know, if we don't have that, we 73 00:04:26,160 --> 00:04:29,680 Speaker 1: can't pay for anything. When our income pays for our mortgage, 74 00:04:29,720 --> 00:04:33,200 Speaker 1: it pays for us regular savings, even our investing, It 75 00:04:33,240 --> 00:04:36,480 Speaker 1: pays for those holidays, it pays for the food, it 76 00:04:36,520 --> 00:04:40,080 Speaker 1: pays for insurances, it pays for medical bills. You know, 77 00:04:40,920 --> 00:04:43,640 Speaker 1: everyone's the same without our ability, unless you, of course 78 00:04:43,640 --> 00:04:45,720 Speaker 1: have a huge amount of passive income, but without our 79 00:04:45,720 --> 00:04:50,560 Speaker 1: ability to actually earn, even the most carefully built financial 80 00:04:50,560 --> 00:04:55,880 Speaker 1: plan can quickly unravel and undo all the hard work 81 00:04:56,200 --> 00:04:59,800 Speaker 1: that you and I have built and potentially lead us 82 00:04:59,839 --> 00:05:04,200 Speaker 1: to a future filled with debt or even which is 83 00:05:04,279 --> 00:05:08,359 Speaker 1: really scary homelessness. And that's why income protection can be 84 00:05:08,440 --> 00:05:12,000 Speaker 1: such a crucial part of not just I guess protecting 85 00:05:12,080 --> 00:05:15,279 Speaker 1: your finances, but also your peace of mind, helping you 86 00:05:15,279 --> 00:05:17,320 Speaker 1: get a good night sleep knowing you know what something 87 00:05:17,400 --> 00:05:19,800 Speaker 1: something happened to me, I got cancer, or I had 88 00:05:19,800 --> 00:05:22,480 Speaker 1: to take time out of works as an accident. I 89 00:05:22,520 --> 00:05:25,880 Speaker 1: still have a backup plan. So that's what income protection 90 00:05:26,000 --> 00:05:28,479 Speaker 1: is and why it matters now. The other thing I 91 00:05:28,480 --> 00:05:32,800 Speaker 1: really want to explain is no two income protection policies 92 00:05:32,800 --> 00:05:35,080 Speaker 1: are the same, and there is no one size fits 93 00:05:35,120 --> 00:05:39,000 Speaker 1: all product or even strategy when it comes to these 94 00:05:39,040 --> 00:05:43,320 Speaker 1: types of financial products. You know, as powerful as income 95 00:05:43,360 --> 00:05:46,560 Speaker 1: protection can be, it's not a simple yes or no decision, 96 00:05:47,360 --> 00:05:50,400 Speaker 1: nor are there you know, two policies identical. It has 97 00:05:50,440 --> 00:05:52,240 Speaker 1: to fit into your life. It has to fit into 98 00:05:52,279 --> 00:05:54,200 Speaker 1: your budget, It has to fit around your health and 99 00:05:54,240 --> 00:05:57,200 Speaker 1: even maybe your family history. You know, what you do 100 00:05:57,279 --> 00:06:00,599 Speaker 1: for work and your overall goals. And this is where 101 00:06:00,600 --> 00:06:02,560 Speaker 1: I really need to be clear and remind everyone like 102 00:06:02,680 --> 00:06:05,960 Speaker 1: I'm not giving you product advice or personal advice, Like 103 00:06:06,560 --> 00:06:09,680 Speaker 1: I cannot tell you whether you should personally take out 104 00:06:09,680 --> 00:06:14,440 Speaker 1: income protection or not. You know, it's such a delicate 105 00:06:14,520 --> 00:06:17,800 Speaker 1: area and it needs to be managed very very carefully, 106 00:06:17,800 --> 00:06:21,200 Speaker 1: and there are so many different products to choose from. However, 107 00:06:21,320 --> 00:06:23,520 Speaker 1: what I can do is explain to you how income 108 00:06:23,520 --> 00:06:26,560 Speaker 1: protection works, what are the key things to look out 109 00:06:26,600 --> 00:06:30,039 Speaker 1: for that I think are really important, and how people 110 00:06:30,720 --> 00:06:35,200 Speaker 1: make having an income protection policy affordable, particularly when it 111 00:06:35,200 --> 00:06:37,560 Speaker 1: comes to their budgets, and making sure that holding an 112 00:06:37,600 --> 00:06:41,200 Speaker 1: income protection policy in a sustainable way, you know, actually 113 00:06:41,279 --> 00:06:44,719 Speaker 1: happens in a real life, a real, really expensive life. 114 00:06:45,360 --> 00:06:47,480 Speaker 1: And this is where I think a lot of people 115 00:06:47,640 --> 00:06:51,000 Speaker 1: get stuck. And this is what my I guess, my worries. 116 00:06:51,160 --> 00:06:53,760 Speaker 1: But I feel like creating this episode will not just 117 00:06:53,839 --> 00:06:58,279 Speaker 1: help you, but help everybody else that's listening, because they know, 118 00:06:58,320 --> 00:07:00,800 Speaker 1: we all know that we deep down we do need 119 00:07:01,040 --> 00:07:03,760 Speaker 1: to have some form of protection, but a lot of 120 00:07:03,760 --> 00:07:07,080 Speaker 1: people don't actually know how to make protection work like 121 00:07:07,120 --> 00:07:12,080 Speaker 1: an income protection without feeling financially squeezed, and then out 122 00:07:12,160 --> 00:07:16,000 Speaker 1: of complete overwhelm, we just procrastinate, We put it to 123 00:07:16,040 --> 00:07:18,840 Speaker 1: the bottom of my list, and we never bother getting advice, 124 00:07:19,440 --> 00:07:23,560 Speaker 1: and in the meantime we're walking around exposed. So promise 125 00:07:23,600 --> 00:07:26,760 Speaker 1: me this not just to this particular person, but to 126 00:07:27,000 --> 00:07:30,160 Speaker 1: everybody listening to this policy right now, but to everybody 127 00:07:30,240 --> 00:07:33,440 Speaker 1: listening to this episode right now, that if you don't 128 00:07:33,440 --> 00:07:37,040 Speaker 1: have income protection already. You will at least make the 129 00:07:37,080 --> 00:07:40,520 Speaker 1: first step and get some advice today, because once you 130 00:07:40,560 --> 00:07:42,600 Speaker 1: sit down with someone and they go through your situation, 131 00:07:43,440 --> 00:07:46,400 Speaker 1: it can be confronting and even you can feel the 132 00:07:46,440 --> 00:07:49,200 Speaker 1: alarm bells running off when someone actually points out the 133 00:07:49,320 --> 00:07:53,640 Speaker 1: dangers that you're carrying around with you every single day. 134 00:07:54,320 --> 00:07:57,040 Speaker 1: And just for the record, the moment something goes wrong 135 00:07:57,120 --> 00:07:59,320 Speaker 1: a doctor says you need to see a specialist or 136 00:07:59,360 --> 00:08:02,200 Speaker 1: an ambulance called, it's too late. You can't go and 137 00:08:02,240 --> 00:08:04,320 Speaker 1: take that policy as you're driving in the car on 138 00:08:04,360 --> 00:08:06,640 Speaker 1: the way to the hospital or you know, driving to 139 00:08:06,640 --> 00:08:09,760 Speaker 1: the specialists. That's too late. And I also have shared 140 00:08:09,760 --> 00:08:11,360 Speaker 1: this before and I'll share it again. One of my 141 00:08:11,400 --> 00:08:14,520 Speaker 1: really good friends is an oncologist, and I'll never forget 142 00:08:14,560 --> 00:08:16,360 Speaker 1: when she said to me the moment I asked my 143 00:08:16,480 --> 00:08:19,200 Speaker 1: new patients, what sort of insurances do you have in place? 144 00:08:19,760 --> 00:08:21,600 Speaker 1: She said, the ones that say, oh, well, I've got 145 00:08:21,720 --> 00:08:24,560 Speaker 1: income Protection, I've got Trauma Carver, I've got life and TPTY. 146 00:08:24,920 --> 00:08:28,200 Speaker 1: She said, their attitude and their mindset is so much 147 00:08:28,320 --> 00:08:31,200 Speaker 1: better from when they start treatment. You know, they're not 148 00:08:31,240 --> 00:08:33,120 Speaker 1: having to worry about selling the house, They're not having 149 00:08:33,120 --> 00:08:35,320 Speaker 1: to worry about pulling their kids out of schools. They're 150 00:08:35,360 --> 00:08:36,800 Speaker 1: not having to worry about how they're going to put 151 00:08:36,800 --> 00:08:39,439 Speaker 1: food on the table or keep paying the rent. They 152 00:08:39,440 --> 00:08:42,920 Speaker 1: can actually focus on healing, on the recovery, and of 153 00:08:42,960 --> 00:08:45,760 Speaker 1: course all those medical bills that sometimes come along with 154 00:08:45,800 --> 00:08:48,920 Speaker 1: this journey, this process of these things that happen in life, 155 00:08:49,320 --> 00:08:53,040 Speaker 1: sometimes out of the blue. So how does an income 156 00:08:53,040 --> 00:08:55,240 Speaker 1: protection work and what are the things you really need 157 00:08:55,280 --> 00:08:58,680 Speaker 1: to understand and look for. It impacts how much an 158 00:08:58,720 --> 00:09:01,600 Speaker 1: income protection policy is going to So the first thing 159 00:09:01,679 --> 00:09:05,640 Speaker 1: is is the benefit period how long it will pay 160 00:09:05,679 --> 00:09:08,640 Speaker 1: you if you cannot work, And typically there's sort of 161 00:09:08,679 --> 00:09:11,679 Speaker 1: two years, five years, or until age sixty five. And 162 00:09:11,720 --> 00:09:13,840 Speaker 1: for the record, not advice, but sharing this with you 163 00:09:13,960 --> 00:09:16,200 Speaker 1: just so you see how serious I'm about this insurance. 164 00:09:16,280 --> 00:09:20,400 Speaker 1: Is I'm covered up to age sixty five. Then there 165 00:09:20,480 --> 00:09:22,800 Speaker 1: is something called the waiting period, and this is how 166 00:09:22,880 --> 00:09:26,959 Speaker 1: much time you have to be off work before payments last. 167 00:09:26,960 --> 00:09:30,400 Speaker 1: And this is typically you know, thirty days, sixty days, 168 00:09:30,720 --> 00:09:32,960 Speaker 1: ninety days, some even do one hundred and eighty days, 169 00:09:33,600 --> 00:09:36,040 Speaker 1: some even do three hundred and sixty five days, some 170 00:09:36,080 --> 00:09:39,040 Speaker 1: even do two years. And again to share this with you, 171 00:09:39,440 --> 00:09:43,920 Speaker 1: I have a ninety day waiting period. Now, the amount 172 00:09:43,960 --> 00:09:48,439 Speaker 1: insured is a big variable that helps calculate how much 173 00:09:48,480 --> 00:09:50,760 Speaker 1: your premium is going to cost you. And it's typically 174 00:09:50,840 --> 00:09:53,600 Speaker 1: you know, you are insured up to say, seventy five 175 00:09:53,720 --> 00:09:58,320 Speaker 1: percent of your current income. There are then lots of 176 00:09:58,400 --> 00:10:03,199 Speaker 1: other things. There are lots of other I guess extras, definitions, 177 00:10:03,400 --> 00:10:07,560 Speaker 1: bells and whistles, and these are what really sort of 178 00:10:07,600 --> 00:10:10,960 Speaker 1: you can start to change and chop and choose what 179 00:10:11,000 --> 00:10:14,280 Speaker 1: works for you to help keep these premiums within reason. 180 00:10:14,920 --> 00:10:17,839 Speaker 1: You know, for example, does this income protection policy that 181 00:10:17,880 --> 00:10:20,880 Speaker 1: you're looking at includes superannuation contributions? So if you get 182 00:10:20,960 --> 00:10:23,880 Speaker 1: sick and you're not working, they'll also top up your 183 00:10:23,920 --> 00:10:26,800 Speaker 1: super in the meantime, because obviously your employer isn't you know, 184 00:10:27,080 --> 00:10:30,760 Speaker 1: is your agreed in short amount? You know, is it 185 00:10:30,760 --> 00:10:33,200 Speaker 1: agreed or is it an indemnity style? Is it? And 186 00:10:33,240 --> 00:10:35,439 Speaker 1: this again depends on you know, whether you're someone who's 187 00:10:35,440 --> 00:10:38,960 Speaker 1: a very volatile income or or someone's on a very basic, 188 00:10:39,200 --> 00:10:42,120 Speaker 1: not basic, but a very consistent I should say salary. 189 00:10:42,600 --> 00:10:45,160 Speaker 1: You know, what are the exclusions you've got in place? 190 00:10:45,200 --> 00:10:47,360 Speaker 1: You know, some people can choose to have a mental 191 00:10:47,360 --> 00:10:50,360 Speaker 1: health exclusion. You know, other people might add on additional 192 00:10:50,360 --> 00:10:52,480 Speaker 1: benefits where you can have pay a little bit more 193 00:10:52,520 --> 00:10:56,080 Speaker 1: and access a whole other suite of benefits, you know, 194 00:10:56,120 --> 00:10:57,760 Speaker 1: to help you get back into the workforce. And I'm 195 00:10:57,800 --> 00:10:59,480 Speaker 1: not going to go into the intricacies of this because 196 00:10:59,480 --> 00:11:01,800 Speaker 1: there's just so many and this is where you know, 197 00:11:02,200 --> 00:11:05,280 Speaker 1: a licensed financial planner can really help you work out 198 00:11:05,440 --> 00:11:08,560 Speaker 1: what's worth paying for and definitely what's not great value. 199 00:11:08,640 --> 00:11:10,640 Speaker 1: And then the other thing is, you know, how are 200 00:11:10,640 --> 00:11:13,080 Speaker 1: you going to own this? You know, are you going 201 00:11:13,120 --> 00:11:15,600 Speaker 1: to hold it in your superannuation or outside of your super? 202 00:11:15,760 --> 00:11:18,760 Speaker 1: Who's going to play your premium? Sometimes you know, people 203 00:11:18,800 --> 00:11:21,720 Speaker 1: cross and sure business partners. Sometimes people cross insure they're 204 00:11:21,720 --> 00:11:24,640 Speaker 1: each other's you know, they're partners. You know, maybe your 205 00:11:24,640 --> 00:11:27,000 Speaker 1: employer is going to pay for it. So you know, 206 00:11:27,200 --> 00:11:30,520 Speaker 1: typically the longer the benefit period and the shorter the 207 00:11:30,520 --> 00:11:32,760 Speaker 1: waiting period, those are the two key things that can 208 00:11:32,840 --> 00:11:36,160 Speaker 1: impact premium. So the longer the benefit period and the 209 00:11:36,160 --> 00:11:39,040 Speaker 1: shorter that waiting period typically higher. If you can stretch 210 00:11:39,080 --> 00:11:43,080 Speaker 1: those out safely under advice, these will bring your insurance 211 00:11:43,120 --> 00:11:47,160 Speaker 1: premiums down. So if you adjust all these factors amongst 212 00:11:47,200 --> 00:11:49,800 Speaker 1: all the other variable ones, I've just briefly mentioned it 213 00:11:49,840 --> 00:11:52,720 Speaker 1: can actually make a policy a lot more affordable. But 214 00:11:52,800 --> 00:11:56,319 Speaker 1: it's also about finding the right balance, the right sweet 215 00:11:56,360 --> 00:11:58,760 Speaker 1: spot for your situation, which is why I can't stress 216 00:11:58,840 --> 00:12:01,640 Speaker 1: enough how a finance planner or even an insurance broken 217 00:12:01,679 --> 00:12:04,480 Speaker 1: may be able to help you with this. So the 218 00:12:04,520 --> 00:12:08,680 Speaker 1: next thing is is talking about budget friendly and how 219 00:12:08,760 --> 00:12:11,280 Speaker 1: to make this a budget friendly way to fit in 220 00:12:11,320 --> 00:12:14,600 Speaker 1: your budget. You know, there are lots of practical ways 221 00:12:14,640 --> 00:12:17,280 Speaker 1: that people make income protection fit into their budget, and 222 00:12:17,280 --> 00:12:20,320 Speaker 1: that's the biggest block for so many people, including yourself 223 00:12:20,400 --> 00:12:23,800 Speaker 1: right now. So an option is to look at holding 224 00:12:23,880 --> 00:12:26,480 Speaker 1: an income protection policy through your super. Now, this isn't 225 00:12:26,800 --> 00:12:30,400 Speaker 1: available to everyone, but it is definitely a really common 226 00:12:30,440 --> 00:12:32,840 Speaker 1: way to help fund your income protection. It's how I 227 00:12:32,960 --> 00:12:36,199 Speaker 1: funded mine. So instead of paying the premiums from your 228 00:12:36,280 --> 00:12:40,080 Speaker 1: take home pay, you have the premiums deducted from your 229 00:12:40,120 --> 00:12:43,800 Speaker 1: superannuation balance, which helps with the short term cash flow, 230 00:12:44,000 --> 00:12:46,199 Speaker 1: and it means that you can have relief because you're 231 00:12:46,400 --> 00:12:49,040 Speaker 1: focused on increasing your mortgage repayments as much as your 232 00:12:49,040 --> 00:12:52,240 Speaker 1: budget allows, and you know, it means that you can 233 00:12:52,360 --> 00:12:56,960 Speaker 1: keep working on those mortgage free goals. The trade off is, 234 00:12:57,280 --> 00:13:01,199 Speaker 1: though you have less money going into SUPER and over time, 235 00:13:01,679 --> 00:13:04,839 Speaker 1: you know, obviously it means that less money is invested. 236 00:13:05,360 --> 00:13:07,640 Speaker 1: And the other important thing to understand is is not 237 00:13:07,679 --> 00:13:11,439 Speaker 1: all superneration policies have the same flexibility or definition, so 238 00:13:12,000 --> 00:13:15,000 Speaker 1: you need to be very careful about the conditions of release. 239 00:13:15,800 --> 00:13:19,840 Speaker 1: And for some you know policies, they allow you to 240 00:13:19,880 --> 00:13:23,280 Speaker 1: have a two year benefit period. So I've seen many 241 00:13:23,320 --> 00:13:27,320 Speaker 1: clients who have superaneration with a certain provider. Yes they 242 00:13:27,360 --> 00:13:30,560 Speaker 1: can apply for income protection, but the maximum benefit period 243 00:13:30,679 --> 00:13:34,000 Speaker 1: is two years. Now in that case, what I used 244 00:13:34,000 --> 00:13:36,760 Speaker 1: to do for these clients is look at a supplementary 245 00:13:36,840 --> 00:13:40,040 Speaker 1: policy outside of SUPER where they would have a two 246 00:13:40,120 --> 00:13:43,040 Speaker 1: year waiting period which would then pay them to age 247 00:13:43,040 --> 00:13:47,040 Speaker 1: sixty five. Which made it very cost effective because if 248 00:13:47,080 --> 00:13:49,240 Speaker 1: they had to go and claim, they would claim on 249 00:13:49,280 --> 00:13:51,640 Speaker 1: the policy within SUPER first and if they were still 250 00:13:51,640 --> 00:13:54,000 Speaker 1: not back in the workforce after two years, we could 251 00:13:54,080 --> 00:13:56,640 Speaker 1: then lodge a claim with the second policy which would 252 00:13:56,640 --> 00:13:59,360 Speaker 1: then cover them all the way through to age sixty five. Again, 253 00:13:59,400 --> 00:14:01,640 Speaker 1: a financial and can help work out what is best 254 00:14:01,760 --> 00:14:03,800 Speaker 1: for you, but these are ways to help make it 255 00:14:03,840 --> 00:14:06,920 Speaker 1: cost effective. Another great option, and I think a lot 256 00:14:06,960 --> 00:14:11,040 Speaker 1: of people don't have these conversations, but when you do, 257 00:14:11,080 --> 00:14:14,720 Speaker 1: they benefit hundreds, sometimes thousands of other people, and that 258 00:14:14,840 --> 00:14:17,560 Speaker 1: is to see if your employer will offer income protection. 259 00:14:18,360 --> 00:14:22,960 Speaker 1: So some workplaces, particularly you know, government or large organizations, 260 00:14:23,520 --> 00:14:27,480 Speaker 1: will actually include income protection automatically as part of your contract, 261 00:14:27,520 --> 00:14:29,520 Speaker 1: will allow you to add it on as a benefit, 262 00:14:29,880 --> 00:14:32,520 Speaker 1: so you might actually discover that you're actually already covered 263 00:14:32,560 --> 00:14:36,320 Speaker 1: without even realizing it. And if it's not offered, it 264 00:14:36,400 --> 00:14:39,840 Speaker 1: might be worth raising this you with your HR or 265 00:14:39,880 --> 00:14:41,920 Speaker 1: your boss to look at it having it as a 266 00:14:41,960 --> 00:14:46,120 Speaker 1: bit of a staff benefit package, particularly in smaller businesses 267 00:14:46,640 --> 00:14:50,560 Speaker 1: or even for bigger, medium to larger businesses where they 268 00:14:50,560 --> 00:14:53,560 Speaker 1: may be able to access economies of scale through group 269 00:14:53,600 --> 00:14:57,080 Speaker 1: insurance policies, which also then makes the application process potentially 270 00:14:57,160 --> 00:15:00,840 Speaker 1: a lot smoother for everybody else. But of course, just 271 00:15:00,920 --> 00:15:04,800 Speaker 1: make sure you know what happens if you have income 272 00:15:04,800 --> 00:15:08,360 Speaker 1: protection through your employer and you leave them, because sometimes 273 00:15:08,400 --> 00:15:11,880 Speaker 1: these policies are not transferable, or if they are, the 274 00:15:11,960 --> 00:15:16,200 Speaker 1: premiums do change and they can sometimes significantly increase. So 275 00:15:16,240 --> 00:15:19,160 Speaker 1: you want to ask all the questions that you possibly 276 00:15:19,200 --> 00:15:21,400 Speaker 1: can and get as much information as you possibly can 277 00:15:21,480 --> 00:15:25,320 Speaker 1: before you make any major decisions. Another great option which 278 00:15:25,320 --> 00:15:27,040 Speaker 1: I've touched on, but again I want to repeat this 279 00:15:27,080 --> 00:15:29,840 Speaker 1: because it is quite helpful particular people who already got 280 00:15:29,840 --> 00:15:33,560 Speaker 1: income protection and are finding it expensive. It's putting stress 281 00:15:33,560 --> 00:15:35,080 Speaker 1: on their budget and they don't want to cancel it, 282 00:15:35,080 --> 00:15:36,360 Speaker 1: but they don't know what to do, and that is 283 00:15:36,720 --> 00:15:41,760 Speaker 1: to look at potentially again under advice, extend your waiting period. 284 00:15:41,920 --> 00:15:44,120 Speaker 1: If you can afford to live off savings you got, 285 00:15:44,120 --> 00:15:47,040 Speaker 1: you know, a lot of emergency money saved up set aside, 286 00:15:47,080 --> 00:15:49,440 Speaker 1: and you've got lots of physickly accumulated and annually and 287 00:15:49,520 --> 00:15:52,520 Speaker 1: even perhaps long service leave accumulated, you may be in 288 00:15:52,560 --> 00:15:55,920 Speaker 1: a position where you can afford to increase the waiting 289 00:15:56,000 --> 00:15:59,760 Speaker 1: period from say thirty days to say ninety days, or 290 00:16:00,040 --> 00:16:02,040 Speaker 1: from ninety days to one hundred and eighty days. You know, 291 00:16:02,120 --> 00:16:05,440 Speaker 1: this really can bring down your insurance premiums by as 292 00:16:05,480 --> 00:16:09,120 Speaker 1: not just like thirty percent in some times. And of course, 293 00:16:09,240 --> 00:16:12,600 Speaker 1: you know, if you do choose to do this, make 294 00:16:12,640 --> 00:16:14,880 Speaker 1: sure you've got emergency money and you've got the right 295 00:16:14,880 --> 00:16:18,680 Speaker 1: amount of emergency money to bridge that gap. And of course, 296 00:16:18,840 --> 00:16:21,440 Speaker 1: if you take up and use up all your long 297 00:16:21,440 --> 00:16:23,520 Speaker 1: service leave or your annual leve or your sick leave, 298 00:16:24,600 --> 00:16:27,680 Speaker 1: make sure you revisit your cover to make sure it's 299 00:16:27,720 --> 00:16:30,000 Speaker 1: still appropriate, because just like when we work on our 300 00:16:30,040 --> 00:16:32,480 Speaker 1: financial goals and our financial strategy, we also need to 301 00:16:32,520 --> 00:16:35,440 Speaker 1: just review and work on maybe making any adjustments to 302 00:16:35,480 --> 00:16:40,880 Speaker 1: our insurance policies. Another option to help keep the premiums 303 00:16:41,000 --> 00:16:43,800 Speaker 1: within check and you know, within your budget so you 304 00:16:43,800 --> 00:16:47,320 Speaker 1: can continue on paying for it is adjust the cover amount. Now, 305 00:16:47,360 --> 00:16:49,920 Speaker 1: this needs to be done very very carefully and only 306 00:16:49,960 --> 00:16:53,160 Speaker 1: after you've checked your budget and your living expenses. But 307 00:16:53,760 --> 00:16:56,960 Speaker 1: you don't actually have to ensure your full income that 308 00:16:57,080 --> 00:16:59,960 Speaker 1: is the seventy five percent you know you could, for example, 309 00:17:00,240 --> 00:17:03,359 Speaker 1: cover sixty percent of your owncome. Just make sure whatever 310 00:17:03,480 --> 00:17:06,200 Speaker 1: you decide to do and the amount that you're going 311 00:17:06,240 --> 00:17:09,240 Speaker 1: to ensure, the payment amount that is the monthly payment 312 00:17:09,240 --> 00:17:11,760 Speaker 1: from the insurance company should you have to go on claim, 313 00:17:12,200 --> 00:17:16,320 Speaker 1: will allow you to meet your essentials. Now, obviously, by 314 00:17:16,359 --> 00:17:19,920 Speaker 1: having a lower level of cover, your insurance premium should 315 00:17:20,040 --> 00:17:22,960 Speaker 1: come down. And this is something that I've actually done. 316 00:17:23,000 --> 00:17:26,000 Speaker 1: I haven't insured my full income. I've ensured a set 317 00:17:26,119 --> 00:17:29,960 Speaker 1: amount per month, and I know that that set amount 318 00:17:30,200 --> 00:17:32,560 Speaker 1: will still help make sure that we can cover the food, 319 00:17:32,640 --> 00:17:37,240 Speaker 1: we can cover the gas, bill, electricity bill, our insurance premiums. 320 00:17:37,280 --> 00:17:39,359 Speaker 1: It can help us pay for all the essentials that 321 00:17:39,400 --> 00:17:42,479 Speaker 1: we need every single day as well as the mortgage payment. 322 00:17:42,600 --> 00:17:44,920 Speaker 1: So I haven't insured my full amount. And again the 323 00:17:45,000 --> 00:17:46,560 Speaker 1: reason why I did that was to help keep my 324 00:17:47,080 --> 00:17:49,680 Speaker 1: monthly premiums at a manageable level so that I could 325 00:17:49,680 --> 00:17:52,960 Speaker 1: afford to keep on holding the policy. You know. And 326 00:17:53,160 --> 00:17:55,479 Speaker 1: the one thing to really keep in mind is, you know, 327 00:17:55,800 --> 00:18:00,360 Speaker 1: in talking about adjusting the cover, as your risks come 328 00:18:00,400 --> 00:18:03,160 Speaker 1: down your financial responsibilities such as you know, paying off 329 00:18:03,200 --> 00:18:06,560 Speaker 1: your mortgage, you may also be in a position where 330 00:18:06,600 --> 00:18:10,160 Speaker 1: you can, obviously under advice, review the level of cover 331 00:18:10,200 --> 00:18:13,160 Speaker 1: and look to maybe scale down the level of cover, 332 00:18:13,600 --> 00:18:17,280 Speaker 1: you know, because your overall financial risks have perhaps reduced, 333 00:18:17,600 --> 00:18:19,679 Speaker 1: but also at the same time you also mind that 334 00:18:19,720 --> 00:18:21,479 Speaker 1: you take on you may upgrade your home and take 335 00:18:21,520 --> 00:18:23,359 Speaker 1: on a bigger mortgage, so you may actually need it 336 00:18:23,359 --> 00:18:25,920 Speaker 1: more than ever before. But this is what you need 337 00:18:25,960 --> 00:18:28,160 Speaker 1: to be doing is reviewing it on a regular basis, 338 00:18:28,200 --> 00:18:30,840 Speaker 1: asking the questions and even calling up your insurance company 339 00:18:30,880 --> 00:18:33,440 Speaker 1: if you have an income protection policy and ask them 340 00:18:33,720 --> 00:18:37,000 Speaker 1: what you could potentially chop and change, take away or 341 00:18:37,040 --> 00:18:39,400 Speaker 1: even add to help give you, I guess, a more 342 00:18:39,480 --> 00:18:43,600 Speaker 1: robust sense of cover, but also help keep those premiums 343 00:18:43,680 --> 00:18:47,080 Speaker 1: within check. Now, I also want to make this important 344 00:18:47,280 --> 00:18:51,280 Speaker 1: note for everybody that's listening right now. The earlier you 345 00:18:51,400 --> 00:18:55,560 Speaker 1: take insurance out, typically the cheaper it will be over 346 00:18:55,600 --> 00:18:59,560 Speaker 1: the long run, and the better the level of cover 347 00:18:59,640 --> 00:19:04,399 Speaker 1: when it comes to health changes. I've shared this before, 348 00:19:04,440 --> 00:19:07,160 Speaker 1: and I'm open and happy to share it again. When 349 00:19:07,160 --> 00:19:09,879 Speaker 1: I took my income protection policy out, I was in 350 00:19:09,880 --> 00:19:12,879 Speaker 1: my early twenties. Now, when I had Rocko, I had 351 00:19:13,000 --> 00:19:16,280 Speaker 1: really bad post natal depression and post traumatic stress syndrome, 352 00:19:16,320 --> 00:19:19,960 Speaker 1: and I went through a really bad phase. Now, Luckily 353 00:19:20,040 --> 00:19:24,000 Speaker 1: because I took that cover out before I experienced those 354 00:19:24,040 --> 00:19:29,640 Speaker 1: health conditions, if I was to reapply today for income protection, 355 00:19:29,960 --> 00:19:33,000 Speaker 1: I would either be declined or I would have an 356 00:19:33,040 --> 00:19:36,919 Speaker 1: exclusion around mental health. Now, when I look at my 357 00:19:37,080 --> 00:19:39,639 Speaker 1: insurance premium and what I pay each month compared to 358 00:19:39,680 --> 00:19:42,119 Speaker 1: what someone would be what I would be applying if 359 00:19:42,119 --> 00:19:44,439 Speaker 1: I was starting from scratch taking out a brand new 360 00:19:44,840 --> 00:19:48,960 Speaker 1: income protection policy, what I'm paying today is cheaper than 361 00:19:48,960 --> 00:19:51,800 Speaker 1: what i'd be paying as a new person, and I'd 362 00:19:51,800 --> 00:19:54,199 Speaker 1: have to go through a lot more extensive medical tests 363 00:19:54,680 --> 00:19:56,760 Speaker 1: Now that's not to deter you at all, but it's 364 00:19:56,800 --> 00:20:00,320 Speaker 1: to encourage people. If you have in come protection, really 365 00:20:00,320 --> 00:20:02,400 Speaker 1: get advices to whether you want to take the risk 366 00:20:02,480 --> 00:20:05,040 Speaker 1: and changing it. And if you're young and fit and healthy, 367 00:20:05,280 --> 00:20:09,600 Speaker 1: seriously consider if income protection is right for you, particularly 368 00:20:09,640 --> 00:20:12,479 Speaker 1: while you're healthy, you're strong, and there are no you know, 369 00:20:12,520 --> 00:20:14,840 Speaker 1: there's no funny doctors appointments or funny tests that have 370 00:20:14,920 --> 00:20:17,640 Speaker 1: come back. Trust me on this, No one ever regrets 371 00:20:17,720 --> 00:20:20,640 Speaker 1: having these policies, particularly when it comes to potentially having 372 00:20:20,640 --> 00:20:23,600 Speaker 1: to put a claim through. Now, as we get towards 373 00:20:23,640 --> 00:20:25,359 Speaker 1: the end of this episode, I want to understand you 374 00:20:25,400 --> 00:20:30,480 Speaker 1: don't understand the risks. These are all smart saving strategies. 375 00:20:30,560 --> 00:20:33,040 Speaker 1: The things I've just shared with you help keep those 376 00:20:33,200 --> 00:20:35,399 Speaker 1: premiums down so they can fit within your budget. But 377 00:20:35,400 --> 00:20:38,760 Speaker 1: it's also vital to understand the trade offs that come 378 00:20:38,840 --> 00:20:42,400 Speaker 1: with making these adjustments or perhaps perhaps maybe not having 379 00:20:42,400 --> 00:20:45,679 Speaker 1: as a comprehensive level of cover through having a reduced 380 00:20:45,680 --> 00:20:49,639 Speaker 1: amount of exposure. So you know, holding your policy inside 381 00:20:49,680 --> 00:20:53,800 Speaker 1: of super can actually come with some certain issues because 382 00:20:53,840 --> 00:20:58,919 Speaker 1: certain insurance companies and superheroishon companies have different definitions. No, 383 00:20:59,320 --> 00:21:01,880 Speaker 1: they may not actually allow a condition of release. They 384 00:21:01,880 --> 00:21:05,600 Speaker 1: may have partial disability benefits or they may not have 385 00:21:05,720 --> 00:21:08,560 Speaker 1: those longer benefit periods, so bear that in mind. Also, 386 00:21:08,720 --> 00:21:12,119 Speaker 1: extending your waiting period, as I've explained, yes, it saves 387 00:21:12,160 --> 00:21:14,800 Speaker 1: you money, but if you don't have you know, a 388 00:21:14,840 --> 00:21:18,359 Speaker 1: strong emergency fund, you may end up relying on credit 389 00:21:18,440 --> 00:21:21,399 Speaker 1: cards or loans or borrowing from family and friends to 390 00:21:21,480 --> 00:21:23,800 Speaker 1: help cover that waiting gap. So you actually end up 391 00:21:23,800 --> 00:21:28,520 Speaker 1: going backwards financially because you couldn't actually take that risk 392 00:21:28,600 --> 00:21:32,399 Speaker 1: of extending the waiting period. And of course, you know, 393 00:21:32,440 --> 00:21:37,119 Speaker 1: reducing your insured amount too low could actually leave you 394 00:21:37,160 --> 00:21:41,120 Speaker 1: onto serious financial pressure if something unexpected happens and it's 395 00:21:41,160 --> 00:21:44,080 Speaker 1: not quite enough to make the mortgage repayments or to 396 00:21:44,119 --> 00:21:46,400 Speaker 1: pay the rent or to put you know, the pay 397 00:21:46,400 --> 00:21:49,000 Speaker 1: the bills and the food and the gas, electricity and 398 00:21:49,040 --> 00:21:51,920 Speaker 1: the car and everything like that. So be very careful 399 00:21:52,080 --> 00:21:54,440 Speaker 1: when you're looking at reducing the cover because it may 400 00:21:54,880 --> 00:21:57,880 Speaker 1: come with financial regret, but at the same time, it's 401 00:21:57,880 --> 00:22:00,640 Speaker 1: better than having nothing at all. Again, which is why 402 00:22:00,640 --> 00:22:02,560 Speaker 1: it's so important to go and speak to a licensed 403 00:22:02,560 --> 00:22:05,480 Speaker 1: financial planner because they will specialize in this area, or 404 00:22:05,520 --> 00:22:07,560 Speaker 1: ask to speak to have someone that specializes in the area, 405 00:22:07,560 --> 00:22:10,119 Speaker 1: and they can do lots of comparisons with you. They 406 00:22:10,119 --> 00:22:12,520 Speaker 1: can look at how the premiums may change over time. 407 00:22:12,640 --> 00:22:15,040 Speaker 1: You know with stepped or level premiums, what's better for you, 408 00:22:15,080 --> 00:22:18,720 Speaker 1: the trade offs, and how these savings will actually give 409 00:22:18,800 --> 00:22:21,000 Speaker 1: value to your life if you ever go to claim. 410 00:22:21,040 --> 00:22:23,679 Speaker 1: And your income protection for most of us, depending on 411 00:22:23,720 --> 00:22:25,959 Speaker 1: how it's held, if it's held outside of super is 412 00:22:26,080 --> 00:22:29,240 Speaker 1: quite often tax deductible. But these are the finer details 413 00:22:29,240 --> 00:22:31,240 Speaker 1: that you know a financial planner can talk to you about. 414 00:22:32,000 --> 00:22:36,480 Speaker 1: So can we look at I guess reframing this as 415 00:22:36,520 --> 00:22:39,520 Speaker 1: protection not financial pressure when it comes to income protection. 416 00:22:39,880 --> 00:22:44,960 Speaker 1: I completely get your worry about balancing this expense with 417 00:22:45,080 --> 00:22:48,080 Speaker 1: your current mortgage goals, particularly if you're feeling really motivated 418 00:22:48,119 --> 00:22:49,960 Speaker 1: and inspired you're seeing your more to come down. The 419 00:22:50,040 --> 00:22:51,720 Speaker 1: last thing you want to do is make it harder 420 00:22:51,720 --> 00:22:54,359 Speaker 1: for yourself. But I also want to offer you a 421 00:22:54,400 --> 00:22:56,840 Speaker 1: way of looking at this differently, like I guess flipping 422 00:22:56,880 --> 00:23:00,320 Speaker 1: the switch. Having income protection means that if you ever 423 00:23:00,400 --> 00:23:03,960 Speaker 1: need time off work because of an illness or an injury, 424 00:23:04,480 --> 00:23:07,040 Speaker 1: you still have an income coming in you know, enough 425 00:23:07,080 --> 00:23:10,959 Speaker 1: to service that mortgage, enough to cover your essentials and 426 00:23:11,040 --> 00:23:14,120 Speaker 1: to help protect the progress that you've made so far. 427 00:23:15,119 --> 00:23:18,679 Speaker 1: Imagine for a second, losing your ability to work for 428 00:23:18,760 --> 00:23:22,199 Speaker 1: say six months or even a year without having an 429 00:23:22,240 --> 00:23:26,800 Speaker 1: income protection policy or some form of insurance. All that progress, 430 00:23:26,960 --> 00:23:31,840 Speaker 1: the repayments, the extra payments, the sacrifices, that could all 431 00:23:31,960 --> 00:23:36,280 Speaker 1: unravel really quickly, and in fact, it could be quite 432 00:23:36,359 --> 00:23:41,439 Speaker 1: scary how quickly. But insurance you're helping protect not just 433 00:23:41,480 --> 00:23:46,359 Speaker 1: your income, but everything that your income actually supports, your home, 434 00:23:46,680 --> 00:23:51,320 Speaker 1: your investments, your superannuation, your stability, your sense of security. 435 00:23:51,840 --> 00:23:55,000 Speaker 1: So yes, it may feel like a financial step back 436 00:23:55,400 --> 00:23:57,560 Speaker 1: having to add this expense into your budget in the 437 00:23:57,600 --> 00:24:00,159 Speaker 1: short term, but it's actually one of the most I 438 00:24:00,160 --> 00:24:04,800 Speaker 1: think responsible and empowering steps that you could take to 439 00:24:04,880 --> 00:24:09,080 Speaker 1: protect the foundation of everything that you've worked so hard 440 00:24:09,400 --> 00:24:13,200 Speaker 1: to build. So looking at a realistic plan to help 441 00:24:13,240 --> 00:24:16,320 Speaker 1: you move forward and get started, and this is a 442 00:24:16,359 --> 00:24:19,840 Speaker 1: simple plan for everyone to consider and look at following 443 00:24:19,840 --> 00:24:22,119 Speaker 1: in a similar situation, whether you've got insurance or not. 444 00:24:22,560 --> 00:24:27,520 Speaker 1: Number One, get quotes, not just online comparison websites are great. 445 00:24:27,600 --> 00:24:29,080 Speaker 1: I love them. I use them all the time, and 446 00:24:29,119 --> 00:24:32,400 Speaker 1: they're great for a quick overview, but they don't necessarily 447 00:24:32,440 --> 00:24:35,159 Speaker 1: show you the full market, So reach out to your 448 00:24:35,240 --> 00:24:38,159 Speaker 1: current superinneration providers. Speak to your employer, speak to if 449 00:24:38,160 --> 00:24:40,280 Speaker 1: you have a financial plan, speak to them so that 450 00:24:40,359 --> 00:24:44,040 Speaker 1: you can start comparing products. You know, it's not just 451 00:24:44,119 --> 00:24:47,040 Speaker 1: comparing apples with apples. There's so much more variables in 452 00:24:47,040 --> 00:24:48,960 Speaker 1: the way. There's so many different layers to this. It's 453 00:24:49,000 --> 00:24:51,679 Speaker 1: not just price, it's definitions, it's exclusions, and it's the 454 00:24:51,720 --> 00:24:53,959 Speaker 1: long term value, particularly when you look at steps versus 455 00:24:54,720 --> 00:24:58,440 Speaker 1: level premiums. Next is to review your emergency expenses. If 456 00:24:58,480 --> 00:25:01,840 Speaker 1: you extend your wedding period, make sure that you can 457 00:25:01,880 --> 00:25:05,119 Speaker 1: comfortably afford to fund that time if you had to, 458 00:25:05,400 --> 00:25:07,320 Speaker 1: if you had to claim. You know, and this is 459 00:25:07,359 --> 00:25:10,040 Speaker 1: where an offset account or a redoor facility can really 460 00:25:10,119 --> 00:25:12,640 Speaker 1: help you stay aligned with those mortgage free goals because 461 00:25:12,640 --> 00:25:15,680 Speaker 1: obviously what you have in your emergency money is offsetting 462 00:25:15,680 --> 00:25:18,000 Speaker 1: the interest that you're paying on your mortgage, so you 463 00:25:18,000 --> 00:25:20,359 Speaker 1: can keep maintaining it. And then of course ask the 464 00:25:20,440 --> 00:25:23,320 Speaker 1: right questions. You know, there are no stupid questions when 465 00:25:23,359 --> 00:25:26,240 Speaker 1: it comes to insurance companies, and you can never overdisclose 466 00:25:26,280 --> 00:25:29,760 Speaker 1: when it comes to that application process. You know what's covered, 467 00:25:30,160 --> 00:25:32,879 Speaker 1: how long is the benefit period? Are you protected for 468 00:25:33,000 --> 00:25:36,600 Speaker 1: both illness and injury? You never want just an accidental policy. 469 00:25:36,960 --> 00:25:39,520 Speaker 1: What about loadings? What about exclusions? What about you know, 470 00:25:39,600 --> 00:25:43,119 Speaker 1: genetic testing and family history. What are the medical tests required? 471 00:25:43,200 --> 00:25:44,399 Speaker 1: You have to get a blood test, you have to 472 00:25:44,400 --> 00:25:46,919 Speaker 1: see a specialist, you have to get medical reports. I mean, 473 00:25:46,920 --> 00:25:49,800 Speaker 1: obviously financial panel will help you with this, but these 474 00:25:49,840 --> 00:25:51,480 Speaker 1: are the questions you want to know because it's not 475 00:25:51,520 --> 00:25:55,600 Speaker 1: a matter of filling out a form and being automatically covered. Necessarily, Also, 476 00:25:55,600 --> 00:25:57,959 Speaker 1: you want to look at quality. I know it's tempting 477 00:25:58,000 --> 00:25:59,960 Speaker 1: to go with the cheapest income protection, but that's not 478 00:26:00,040 --> 00:26:03,160 Speaker 1: necessarily the right one for you. You want to make sure 479 00:26:03,160 --> 00:26:06,480 Speaker 1: that if you ever have to claim, that insurance company 480 00:26:06,880 --> 00:26:08,679 Speaker 1: is going to meet that claim, and it's going to 481 00:26:08,680 --> 00:26:12,000 Speaker 1: meet that claim swiftly, because that's what it's Therefore, the 482 00:26:12,040 --> 00:26:14,160 Speaker 1: whole point of having income protection is if you claim 483 00:26:14,160 --> 00:26:17,400 Speaker 1: on it, it pays. And then of course review your insurances regularly. 484 00:26:17,440 --> 00:26:21,680 Speaker 1: You know, as your situation will naturally evolve, your mortgage drops, 485 00:26:21,800 --> 00:26:24,600 Speaker 1: your position strengthens, you may be in a position where 486 00:26:24,600 --> 00:26:26,879 Speaker 1: you can reduce that cover or even look at self 487 00:26:26,880 --> 00:26:30,320 Speaker 1: insuring where you have met plenty of passive income streams 488 00:26:30,359 --> 00:26:34,280 Speaker 1: giving you that insurance, you may not necessarily always use it. 489 00:26:34,800 --> 00:26:37,760 Speaker 1: So to answer your question, is income protection worth it? 490 00:26:38,119 --> 00:26:40,240 Speaker 1: In most cases it can be one of the most 491 00:26:40,440 --> 00:26:44,480 Speaker 1: valuable forms of financial security that you can actually take 492 00:26:44,480 --> 00:26:47,760 Speaker 1: out of yourself. And it needs to be done though, 493 00:26:47,960 --> 00:26:50,199 Speaker 1: to make it worthwhile. It's got to be structured in 494 00:26:50,200 --> 00:26:51,639 Speaker 1: the right way. It's got to be provided by a 495 00:26:51,720 --> 00:26:54,199 Speaker 1: quality insurance provider. It's going to be affordable, It's going 496 00:26:54,200 --> 00:26:57,480 Speaker 1: to be obviously alignment to your goal. So listen to this. 497 00:26:57,800 --> 00:27:00,679 Speaker 1: You've obviously worked incredibly hard to get you are today. 498 00:27:00,920 --> 00:27:05,960 Speaker 1: Protecting that progress does not take away your goals and 499 00:27:06,040 --> 00:27:07,960 Speaker 1: dreams of being more which free. In fact, I think 500 00:27:07,960 --> 00:27:11,199 Speaker 1: it actually strengthens those goals. Protecting your income is not 501 00:27:11,280 --> 00:27:15,960 Speaker 1: about being fearful. It's about confidence and the confidence that 502 00:27:16,080 --> 00:27:19,120 Speaker 1: no matter what life throws you from a medical point 503 00:27:19,160 --> 00:27:21,800 Speaker 1: of view, your goals can keep moving forward. Even if 504 00:27:21,840 --> 00:27:24,800 Speaker 1: it's a little bit slow, it can keep moving forward. 505 00:27:25,359 --> 00:27:27,639 Speaker 1: So thank you so much to this listener for this 506 00:27:27,840 --> 00:27:29,800 Speaker 1: very thoughtful question, because I think so many people will 507 00:27:29,840 --> 00:27:32,679 Speaker 1: benefit from listening today's episode. And if you yourself have 508 00:27:32,720 --> 00:27:35,760 Speaker 1: been listening and wondering about your own income protection, can 509 00:27:35,800 --> 00:27:38,000 Speaker 1: you please take this as your sign to review it 510 00:27:38,040 --> 00:27:40,200 Speaker 1: if you've got it, and if you don't have it, 511 00:27:40,440 --> 00:27:42,680 Speaker 1: go and speak to a financial planner, because I want 512 00:27:42,720 --> 00:27:45,120 Speaker 1: you to be living a life filled with fear, because 513 00:27:45,119 --> 00:27:46,639 Speaker 1: I want to make sure that you're living a life 514 00:27:46,680 --> 00:27:48,879 Speaker 1: that's not filled with fear of something going wrong, but 515 00:27:48,960 --> 00:27:53,320 Speaker 1: actually empowerment and clarity. So if this episode helped you, 516 00:27:53,359 --> 00:27:54,840 Speaker 1: can you please do me a huge favor and go 517 00:27:54,880 --> 00:27:56,800 Speaker 1: and share it with a friend or someone who's maybe 518 00:27:56,880 --> 00:28:00,600 Speaker 1: juggling the same dilemma. And if you have a question 519 00:28:00,680 --> 00:28:03,760 Speaker 1: for me to start here, don't be shy. Send me 520 00:28:03,760 --> 00:28:06,600 Speaker 1: a DM on Instagram, at Sugar Mama TV or even 521 00:28:06,680 --> 00:28:10,359 Speaker 1: Canna Campbell Official. I'll see you next Monday morning on 522 00:28:10,440 --> 00:28:13,960 Speaker 1: Sugar Mama's Fireplay. Thank you everyone for listening, and feel 523 00:28:14,000 --> 00:28:16,720 Speaker 1: free to leave me a rating and review. I would 524 00:28:16,760 --> 00:28:19,680 Speaker 1: be so incredibly grateful. Chow for now.