Imagine a scenario where you went to the store and came across a machine that was able to produce income worth tens of thousands of dollars for 50+ years, how much do you think something like that would cost? Well in this hypothetical scenario you get one for free! However, the salesman warns that this product is quite fragile and prone to a variety of issues that without warning, could limit its ability to generate money, either temporarily or forever. As you are only allowed one money-printing machine don’t you think it would be smart to have insurance for something so valuable?
Insurance is boring. No normal person gets excited when their car insurance policy comes due & they must fork over another 12 months’ worth of payments. We all go through the same thought process: “this seems expensive”, “I could use this money for bills/holidays/fun” & of course “I’m a safe driver and won’t have an accident”.
Despite the apprehension to paying for something we may never need, the majority of us do have car insurance. We have it because we recognise the risk & cost of losing our car. There is an easily visible direct link from our wallets to our vehicle that triggers a warning in our brain: “I don’t want to pay for that again!”. So, despite our assured (over)confidence in driving ability, we opt not to gamble thousands of dollars on the likelihood of having no accidents ever. This feeling of concern or unease about replacing our car would certainly extend to something as valuable as a money-making machine.
The spoiler for the tale of the money printing machine is that you are this machine (not exactly a twist on-par with The Sixth Sense). We take for granted our ability to generate income & provide for our families because our own intrinsic dollar value is not overtly floating above our heads like a human price tag. If your family is dependent on income you create, you are an asset that needs covering. It’s not fun or sexy but personal insurance may be the difference for your family between scraping by & living the life you always planned on.
If these don’t sound familiar you should talk to your financial advisor immediately to ensure you & your family are not at risk.
Written by Matt Haggarty of Maxim Private Clients
Disclaimer: This material has been prepared without considering any potential investor's or clients objectives, financial situation or needs. This article is of a general nature and does not consider the individual circumstances of its recipients. Any information contained within this publication should not be misinterpreted as advice in any way. Please consult your financial advisor should you have any questions or concerns
This article is presented by Matthew Haggarty, Director of Maxim Private Clients and a Certified Financial Planner. Maxim Private Clients Pty Ltd ABN 47 611 614 398 AFSL No. 511972