At least one in five Australians will be unable to work due to an unexpected accident, injury or illness at some point in their life.1
Despite the statistics most of us go about our daily routine as if we’re indestructible, invincible or unbreakable. If something were to happen though, who’d step in on your behalf?
Would you hit up mum or dad, your partner, a sibling, friends, a room-mate or next door neighbour? And if someone was dependent on you, who’d take care of them? You mightn’t have kids, but what about your partner, an elderly parent or pet?
The reality is, if you were temporarily or permanently out of action, you might have to pay someone to do all or some of your daily duties for you. We look at some scenarios worth pondering over.
Monetising the things we do, but take for granted
If you couldn’t work due to injury or sickness, you might be able to cover your financial commitments for a while—bills, utilities, and treatment and rehabilitation costs, if you needed it.
Managing daily tasks though would be a different beast altogether. Let’s put it into perspective:
- Who would step in to shower and dress you if you needed assistance?
- Who would take care of the food preparation and cooking?
- Who would opt to take over your washing and ironing duties?
- Who would vacuum, dust and tidy?
- Who would look after the garden and other home maintenance jobs?
- Who would manage your paperwork, bills and do the weekly shop?
- If you have kids, who would get them to and from school and other activities?
- If you have animals, who would feed them, tend to them and take them for their daily walk?
- And, how would you get from A to B? Would someone be able to drive you?
Looking at it this way, meeting your financial responsibilities could pale in comparison to managing, and potentially paying for someone else, to carry out every day errands.
Having a financial buffer in place could take a load off
Even if you’re working hard to build a comfortable lifestyle, it’s important to take time to consider what you’re worth beyond what you might be receiving as part of your pay packet.
After all, average household debt in Australia today is $245,000, so your income as well as your input can make all the difference to your financial footing.
If you don’t have a financial buffer in place, things that may be worth thinking about could include an emergency fund where you set aside some savings, taking out personal insurance, or if you’re already insured, checking the level of insurance you have is sufficient.
While insuring yourself won’t prevent illness or injury, it can give you peace of mind that you can at least meet your financial commitments and potentially any additional costs that may come your way.
For further information
If insurance is something you’ve been thinking about, our videos and online information can help you make an informed decision while our online calculators can help you estimate how much insurance costs and how much insurance you might need.
The risks of underinsuring your most important asset–yourself