Do You Need Personal Insurance?

Paul Atherton
Fortune For Future
Published in
4 min readFeb 14, 2022

It’s a question many people ask me — is insurance worth the cost?

This article is referenced from TWSG podcast.

There is a massive amount of underinsurance in Australia.

I’m talking about personal insurance. That’s life insurance, total permanent disability, income protection or trauma.

These types of insurance cover you should you have a life-changing illness, accident, or some other type of personal health issue.

And if you don’t have any of these types of insurance, you’re not protected.

When I say you’re not protected, what I actually mean is your dependents are not covered. Although if you have no dependents, there may still be reasons to get insurance.

Some people have a family, a mortgage, or a partner and don’t protect their income. They’re not protecting their life, and they’re not protecting their ability to earn.

There are many reasons people don’t have these insurances.

Many people do it out of ignorance; they don’t understand it, so they don’t prioritise looking into it. Many people just think they’ll get around to it eventually and never do. Even more people believe they just don’t need it at all.

Let’s look at some myths about insurance.

The first myth is I can’t afford insurance.

Of course, the retort to that is you can’t not afford it. You must get personal insurance. Without it, you’re leaving your family exposed. Any loved ones that you have will be exposed if something happens to you.

You need to have insurance.

It’s nowhere near as expensive as you think it is. If there was a common reaction when I get people insured it’s, “oh wow, that’s much cheaper than I thought it would be”.

The perception of insurance cost is way out of proportion to the actual price.

The second myth is I will never make a claim.

That’s the feeling. And why would you expect that you would need to claim your life or income insurance? You haven’t needed it yet, after all.

People feel like they’re throwing money away because they don’t think they’ll ever make that claim.

Well, unfortunately, the statistics say otherwise.

In 2016–2018, the third most common cause of death for 25–44-year-olds were transport accidents. Then as soon as you start looking at the over 45s, heart disease and all kinds of cancers become increasingly common.

And what if you are just incapacitated by one of these illnesses, unable to work, for an extended time? You need income protection.

We hear it on the news, but we just ignore it. It’s far more likely than you think, and it’s always better to be safe than sorry.

The third myth is that life insurance is not necessary.

I know plenty of people who will insure their phone, even more, who will insure cars. Why would you be more concerned about your possessions than the health and wellbeing of your loved ones?

To me, this is a no-brainer. Of course it’s necessary; it will help keep your loved ones financially safe if the worst happens.

The fourth myth is insurance is too expensive.

It’s not true. Like I said before, most people can afford it, and the upfront cost is better than the alternative of not being covered if you need to claim.

Life insurance is usually cheaper than car insurance.

For Australians, all those necessary insurances, we can place in superannuation.

Your insurance payments won’t even come out of your daily cash flow. You won’t notice that you’re even paying it.

Insurance in Australia has some of the best payout rates and the best returns in the world. We’ve got it good. Take advantage of it.

You need insurance, so you can go forward in life knowing that your friends and family will be covered.

When thinking about personal insurances, remember…

  1. Having personal insurance will protect your loved ones — when you’re insured, your family will have peace of mind.
  2. Personal insurance is cheaper than you think — do some research into the types of policies you may need; you will be surprised to learn how affordable it is.
  3. Everyone should consider personal insurance — as you get into your 40s, your risk of severe illness increases.
  4. If you’d insure your car, you should insure yourself — cars are replaceable, but you aren’t.
  5. Investigate the life insurance options in your superannuation — you might already be covered, so make sure that it suits you.

For the latest tips from That Wall Street Guy, visit my website.

This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.



Paul Atherton
Fortune For Future

I am an ex-Wall Street advisor who has worked with major players in the global financial industry for more than 30 years. Mission: Great advice for everyone