Think you don’t need income insurance? Consider this heart-wrenching story first
The right insurance can save you from a financial and emotional nightmare, as this heart-breaking situation highlights.
In line with International Women's Day on 8 March, Verve Super founder and CEO Christina Hobbs shares a story that highlights the dire consequences of not having the right insurance in place.
"I actually heard a story of a woman last year who lost both of her arms to sepsis and could no longer work. She and her partner had, just six months before, gone through all of their insurances and re-done them," Hobbs tells Finder.
"It's only because they did that, that it meant her husband was able to stop work to be her primary carer. They could also fund the remodel of their house, and she was able to get support to re-enter the workforce. Their lives would have been completely different if they didn't have their correct insurances in place."
Hobbes urges all Australians to make sure they have insurance coverage in place to protect "all the things that you value and treasure in your life".
"Insurance is so important and so many people don't have it," she says.
"Working for a super fund, we're often at the end of the line when people go through severe financial hardship, like a partner dying or getting cancer or losing a child, or something traumatic. That's when we often hear from members, who are trying to take out their super to plug that financial gap, which is really sad and tragic."
Protect what matters most
There are a number of important risks that all Australians should be aware of, and with women still at a financial disadvantage to men, it's especially important for women to ensure their financial interests are protected.
According to Finder's new research report, From pay gap to parity, women have on average far less savings in the bank than men (around $21,000, compared to $37,000 for men) and the gender pay gap persists, sitting at around $56,000 for women versus almost $80,000 for men.
To avoid this happening, Hobbs suggests you spend a couple of hours sitting down to write down all the things that you value and treasure in your life.
"Then, work out what's the worst thing possible that could happen to that thing? And could you afford to do what you would need to do in that situation?" she says.
"If the answer is no, go out and get some insurance to protect it. Whether that's: I love my dog, what would happen if I had to go and spend $3,000 for an operation? Or I love my kids, what would happen to them if something happened to me? Would they have significant financial security afterwards?"