According to research released by AXA yesterday “Australians are amongst the most carefree and optimistic nations in the world when it comes to life risks.”
Optimism is a great thing but is our attitude based on fact or based on a desire to avoid thinking about that which makes us uncomfortable? The research suggests that it is the latter. (Download the 2007 AXA Protection Report)
Preparation is better than regret.
I am not advocating dwelling on what could go wrong.; that’ll just lead to a miserable outlook on life. I am a big advocate of rational analysis of risk and consequences and ensuring that safety nets are in place. Think and act then get on with enjoying life.
So if you don’t think you need insurance I ask you on what basis have you made that assessment?
- Have you consider the facts about the likelihood of you not being able to work for an extended period of time due to accident or illness? In my experience people greatly underestimate the likelihood leading to a falsely based “it won’t happen to me” attitude.
- Have you properly considered the consequences if it did happen? Consider the true impact on your life and your family’s life if income did not come in for months even years. Do you really want to lose your lifestyle? “She’ll be right mate” is the attitude that comes form underestimating the consequences – but will you really be all right?
If the likelihood is high enough and/or the consequence unbearable enough then create a safety net under your lifestyle by considering insurance.