Don’t rush into rash decisions

Protect your castle

The tumult of 2020 took many Australians by surprise in way of lifestyle, agency and employment. In light of new research from a Roy Morgan study, the impact of COVID-19 on Australia’s job market shows 67% of Australians have had ‘a change to their employment’ due to the pandemic, 4% or 620,000 were made redundant by July 2020 and 25% are working from home. The chances are that you, someone you know or even both of you are in one of these categories and have run the numbers on your life’s expenses ad nauseam. Having peace of mind when it comes to your finances is crucial in returning to a desirable quality of living, but one must be discerning in balancing the books instead of hastily cutting costs. In a recent Guardian article, uAcademy’s founder Jay Lee warns against the knee-jerk response to cutting insurance- “Check whether you’ve got insurance policies designed to help if the worst happens, such as payment protection insurance…your home is your castle, and you should protect it”. Alluding to the necessity to be able to meet your living costs should you fall ill or injured, Aspect Underwriting offers up to 85% income over with a tailored Income Protection Policy.

Compensated for adapting

If you were lucky enough to retain full-time employment but find yourself working from home, you may find yourself at higher risk to injury or illness working in an environment ill fitted for OH&S regulations and productivity. In a Smart Company Article, Research from Asana found some 77% of workers in Australia and New Zealand experienced burnout in 2020, “highlighting concerns about mental health in working from home”. Participants indicated the increased volume of meetings, phone calls, workload and the stress of chasing people for feedback, as the top three barriers to productivity. Not all injuries and illnesses are sudden, they creep up slowly and develop over time. If this happens to you and causes a gradual reduction in hours, you to dip into your sick leave or seek health consultation, the chances are it will eventually eat into your income. Aspect Underwriting Income Protection Policy covers up to 85% and a successful claim will typically be calculated based on your earnings in the year before your injury or illness (accounting for factors such as maternity leave, working part-time et al). As it’s not a Workers Compensation Claim, Aspect Underwriting’s Income Protection policy will never require you to prove you were injured during work.

Underinsurance, a persistent problem

The reality for underinsured Australians is the Coronavirus is only a single risk factor that can cause income deficit and financial pressure on you and your dependents. It is crucial to remember that there are umpteen other factors that exist amidst the pandemic and they are sure to outlive it. Independent actuarial consulting body Rice Warner’s ‘Underinsurance in Australia 2017 report’ found that only a third of working age Australians have taken out an income protection insurance policy. The equation is a damming but simple one- there is a very high chance you or someone you care about was off-guard when the economy experienced a seismic shift in 2020 and the blow back is unknown. Aspect Underwriting’s end-to-end online quote system is free, removes the standard barriers to entry upheld by many other brokers and will allow you to navigate any tricky climate with confidence and protection.

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About the Author: Paul watson