The sound of the screeching tyres will be etched in Karin’s memory forever. Karin and her beloved husband were happily driving home late one night when their world tragically collapsed, they were involved in a fatal car accident. Karin suffered head and back injuries and she will make a strong recovery but the news wasn’t so good for her husband Nicolas. He was pronounced dead shortly after the accident. Luckily, their children were being looked after by Karin’s parents but unfortunately, the family will never be the same again.
After all the emotional heart-ache, the family had to try and cope with not only losing their devoted father and husband but also the financial security that he provided. Nicolas was the main income earner of the family and didn’t have any life cover to help out Karin or the children. Karin returned to work after four months in rehabilitation and was under enormous pressure, both physically and financially. The family was behind on mortgage repayments and struggling to make ends meet. It is heartbreaking to know that this scenario is far too common for families around the nation.
Figures have emerged from a recent study on the impact of parental death and the results are not good. An alarming 60% of parents surveyed believe that they would not be able to support the family if their partner died. It is disturbing to acknowledge that more than half of the parents surveyed would not be able to provide food, clothing, shelter- the bare necessities- for their family if their partner passed away.
It is difficult thinking about it the “What if?” scenario, however putting a protection plan in place is a vital component to your finances. There are many questions you need to ask yourself. What cover do I need? How much cover do I need? Who relies on me for financial support? Below is a simple graph that shows the different life stages and the relevance of insurance.
Often people insure their homes, their cars and in some cases, their jewellery and don’t bother to insure themselves. I find this not only alarming but illogical. Homes, cars and jewellery can all be replaced, but how come someone replace a loved one? What this tells me is that most people believe their homes and their cars are more important than themselves. In the above scenario, Karin’s car was insured and she will be able to buy another Ford or Holden but she will never be able to buy another Nicolas.
It is important to take the time to consider the financial impacts of losing a loved one. If the unthinkable does happen to you, wouldn’t you like to know that your family would be looked after?
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