Philip Holland Financial Independence financialindependence

Imagine if you were unable to go to work and earn the bread and butter for your family. Could you or your family survive financially?

So if you were unable to work how long would your income last? If you are an employee you may have some sick days and holiday pay owing...then what?

Even worse for those who are self employed. If you can't work then your income disappears, but many of your expenses may still continue.

Have a quick think about your situation. How long could your family survive without your income? Who would pay the mortgage?

So what can you do to avoid placing financial stress on your family?

Keep fit and healthy. If you feel ill visit a doctor asap – especially the blokes.

Income protection Insurance – this can help to replace most of your income. This is such a big subject we will cover it separately in a future article.

Trauma Insurance – This can pay out a lump sum of money to ensure you are financially covered while you are recovering from a trauma such as cancer, stroke or heart attack.

Total and Permanent Disability – again pays out a lump sum of money should you suffer a disability.

It is important to remember that your ability to earn an income is probably your largest asset. Most people flippantly ignore this major risk and yet many still insure their small assets such as the TV.

Philip Holland is the managing director for the Financial Independence group, Tauranga's leading specialist insurance and mortgage advisers. For further information please contact an adviser at Financial Independence phone 07 578 4414 or email [email protected] A Disclosure Statement is available free of charge on request. The opinions stated in this article are those of the writer and should not be taken as specific advice.