Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 64
Protect Against the
Larger Risks
Savings can cover
many smaller setbacks,
but some risks are too
large for an emergency
fund alone.
Appropriate insurance
may help protect
against events such
as serious illness,
disability, damage to
a home or the loss
of an income earner.
The right cover will
vary according to
household structure,
employment, assets,
debts and existing
insurance held through
superannuation.
Reviewing insurance
does not necessarily
mean buying more. It
means understanding:
• what is currently
covered
• the exclusions and
waiting periods
• whether the insured
amount remains
appropriate
• how much would need
to be paid as an excess
• whether cover is
duplicated across
policies or super funds.
An outdated policy may
provide less protection
than expected, while
unnecessary duplication
can quietly increase
household expenses.
Prepare for an Income Disruption
A loss or reduction in income can have an immediate
effect when most earnings are already committed.
Financial resilience improves when households have
a basic contingency plan. This might include knowing
which expenses could be paused, how long savings
would last and which bills would require immediate
attention.
It can also help to keep important 昀椀nancial
information accessible, including account details,
insurance documents, superannuation information,
debts and regular payment dates. In a couple, both
people should understand the household 昀椀nances
rather than leaving all knowledge and responsibility
with one person.
Skills and employment 昀氀exibility also form part
of 昀椀nancial resilience. Maintaining quali昀椀cations,
professional networks and an up-to-date résumé
may help reduce the duration and 昀椀nancial impact
of an unexpected employment change.
