Young couples

Growing a relationship is often partnered together with building a lifestyle and a financial future. It is an exciting planning stage, you’re part of a team working together towards goals and objectives. No one plans to get sick, injured or to die un-expectantly. We often have a tendency to think that it won’t happen to us but the reality of serious injury or illness can have a life changing impact. Even though you are relatively young and still expanding your financial responsibilities the potential impacts of being unable to provide an alternate source of income if you are ever unfortunate enough to suffer such an event can be quite devastating.

It is worth considering:

• Sufficient life insurance is generally accepted to be at least ten times a person’s annual salary. A worrying statistic is that six in ten people with dependants don’t have enough life insurance cover to look after their family for more than one year if they were to die¹.
• More than 60% of Australians were disabled for more than one month during their working life and more than 25% were disabled for more than three months.²

A recent sample survey of young couples with household incomes or joint assets (excluding the family home) of over $50,000 found that only:

• 32% had life insurance³; and
• 15% had critical illness insurance³.

This compares with the 65% of the same sample who comprehensively insured their car and 67% who insured their home and contents³.

As you start your journey together you will be looking to choose a path that will eventually lead you both to an independent financial future. Whilst your aim is to provide for today you are also planning and taking steps to reach your goals.

Your are driven and focused to:

• buy your first home;
• establish your career or start a business;
• look towards future investment plans; and
• travel, socialise and take part in sporting activities.

Whilst you don’t have any children dependent on you as a young couple your responsibilities are towards each other. Together you both still face many risks to your current and future lifestyle that you both should consider. It’s worth taking a moment to consider what would happen if you lost your ability to earn an income. Consider the consequences of permanent disablement – how would you provide for your partner?

The advantage of having a personal insurance plan is that you can make relatively small payments but instantly you put into place a protection plan that can provide financial security that will avoid you having to rely on:

• Your savings, investments and assets;
• Government benefits which may provide relatively small levels of income; and
• Your family to provide long-term financial help.

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¹IFSA-Rice Walker Fast Facts: A nation exposed! Underinsurance key facts, August 2005
²Australian Disability Table IAD89-93 Class
³Quantum Market Research, AustralianSCAN Consumer Segmentation, 2004