How do you Handle a Crash in the Game of Life?

Life sometimes throws us curveballs - but with the right strategies in place, you can take the financial stress out of insurable events, writes Kris Ballantyne of Partners Life.

Playing the game of life is not straightforward: there are highs and lows, twists and turns and sometimes there can be things that bring the game to a screeching halt, either temporarily or permanently. Are you and your loved ones prepared for a crash in the game of life? There are a variety of things that may interrupt your life and as a result, your bank account. So, it’s important to think of ways you can safeguard your money for when those interruptions occur. Insurance can be one of those ways you can protect yourself from the costly effects of those interruptions.

What would happen if your earning capacity was lost or diminished?

Let’s paint a picture for you… You’re an adult now and have built yourself a full life. You may even have kids or someone looking to you to help provide for them; being needed comes with its own set of responsibilities. Some of you may not have anyone relying on you, but that doesn’t mean you’re excluded from this conversation. What would happen if you couldn’t earn an income? Who would take over the responsibility of looking after you and/or your family? We’re not invincible. Could you honestly say that you have enough funds to cover your living costs while you recover? With the cost of living on the rise, are you confident that you have enough in savings to cover any interruptions to your life?

Taking the financial stress out of the equation

This is where personal risk insurance can enter the conversation. Having insurance in place can help take the stress out of things, whether it be supplementing any missed income or helping to pay for life-saving treatments so you can focus on getting back to being 100%. Life and health insurance companies have a wide range of products you can choose from that will suit you and your financial needs whilst ensuring the best protection is in place to help soften any bumps in the road of life. In addition to popular personal risk products like life and medical insurance, there are other products that can help soften the blows and prevent your life crashing to a halt.

Beyond just life and medical insurance

Different insurance products that can be fit for different purposes, and it’s helpful to know about these when considering the types of risk that may need to be covered.

Monthly disability products like income protection can help cater for short-term disruptions to your lifestyle. For example, if you’ve been in an accident or been given a medical diagnosis that means you have to take time off from work. An insurance product like this can help supplement any lost income for a period, taking the stress away of who will pay for the living costs so you can focus on your recovery. Products like trauma or total permanent disability insurance, on diagnosis of a condition, pay you a lump sum which you can use to fund treatments you may need, or for any unexpected costs that come up because you’re not able to work for a longer period of time.

Unexpected events are never predictable!

In the insurance industry we hear and see countless events that can bring major disruptions to people’s lives. While you may not always see the value over having insurance compared to spending your money on things that can give you instant gratification in that moment, a small sacrifice now means being protected from any interruptions. You never know when a crash will occur but sorting out ways to help soften them will have ‘future you’ thanking your past self for looking out for them.