Insurance. What’s the point?

Most people look at insurances from a viewpoint of fear. It’s the old “what if”. What if something terrible happens? What if I die?  What if I can’t work? This can be a very negative viewpoint to have for your life. 

Why not try looking at it from a different viewpoint – one with a positive outlook? Everyone has goals; some big, some small. Here at Investors Direct, we believe that you can do better. We believe that you can improve your financial situation. While not every financial goal is attainable, we believe in you and that you can do better. And that’s how we view insurances.

When I look at a person’s financial situation and their goals, I try to look at the whole thing – the big picture. I try not to just look at their insurance or their super, or their mortgages, or their shares in isolation. There is no "one magic thing" that will solve everyone’s financial problems or get everyone to reach their goals. Everyone’s different and these things are very personal. But no matter what your goals or your situation, the overall view must encompass your goals, your freedoms and your barriers.

Your goal is set by you (maybe with a little help from an advisor). The goal could be to have “$100k in passive income within 15 years” or “My home paid off in 5 years”, or “an overseas holiday every year”.

Your freedoms are things like your ability to make money or work, or the time you give to certain projects, or the attention you have for other activities.

Your barriers are the things that could stop you from achieving your goals. These could be “work is too busy, so I’ve got no time to invest”, or “I got made redundant” or “I don’t have extra money to invest”.

The barriers section is where insurance fits in. If you have a goal, and some freedom, it would be a bit foolish not to look at the whole situation and try to figure out or predict some of the potential barriers or problems that could arise which would keep you from getting to your goal. It would be bad planning to ignore the possibility of them happening to you. Knowing that your financial plan depends on you having an income, or on you being a full time producer, and not confronting the possibility of a situation occurring where you could no longer do that, is just bad planning. 

So why not trying looking at insurance from the viewpoint of taking full responsibility for the Goal(s) you have. What else, aside from your proactive activities, could you do to ensure and give yourself a better chance of achieving your goals, than taking out an affordable plan to protect them?

If you haven’t already done so this year, I’d recommend you get your insurance situation reviewed. We’re happy to help you here of course and you can reach me at damian.espinosa@investorsdirect.com.au

But whatever you do, whether it’s with me or someone else, find a trusted advisor, and make sure they help you achieve your goals!


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Investors Direct Financial Group

Investors Direct Financial Group (IDFG) was established in 2001.
Our mission is to help our clients achieve and maintain their financial freedom.

Members of the IDFG Group include:
  • Nanmon Financial Services Pty Ltd, trading as Investors Direct Financial Group (ABN: 52 097 697 820 ; ACL: 402950)
  • ID Property Advisory Pty Ltd (ABN: 69 141 716 412 ; Real Estate Licence: 071792L)
  • Investors Direct Financial Planning Pty Ltd(ABN: 50 141 139 228 ; AFSL: 385827)
  • 8 Star Homes Pty Ltd (ABN: 83 135 066 876)