Insurable Risk

 

Insurance Risk

During your working life (i.e. between the ages of 18 to 65) there are some serious things you don’t want, or expect, to happen – death, disability, serious illness. Unfortunately, should any of these occur, it can have a severe impact on your, and your family’s, financial health.  So how likely is it that disaster will strike?

Non smokers table

And what about the smokers?  Not only are the above risks increased, your financial health continues to suffer unnecessary set-backs.  A pack a day habit will soon be costing you $10,950 each year.  Think of what you could do with that!

Smokers table

While these risks are real and should be planned for, your personal situation is unique and the generalisations of the statistics don’t necessarily apply to you.  A number of factors will affect your own risk – some within your control (e.g. diet and exercise and not smoking) and others not (family history).

But whatever your attitude towards risk, it makes sense to talk to your insurance adviser to see if you could cope with the financial impact should one of these risk factors strike you.  Make sure you have the cover and protection you need.

Source: NZ Life Tables, Davies Financial & Actuarial, 2013