Newsletter Articles

Risk Review – Can you cope with the risk of inadequate cover?

Risk is a part of everyday life we would rather avoid thinking about. No one likes to imagine being touched by disaster. Fortunately many Australians have taken out policies to insure against some risks. However, our insurance policies need to be reviewed on a regular basis to avoid being left in the lurch.

It is vital to review your insurances to ensure that they still meet your needs. What would happen if your house burnt down and you did not have adequate cover to rebuild? Everyone’s situation is unique, that is why it is so important to identify your risks, analyse how significant they are and find ways to handle them.

A simple way to begin is to think about the effect on the financial position of your family, is to see which boxes you would tick on the risk matrix. You might think that doing the risk assessment is easy, but have you really given it enough thought.

Some things to keep in mind when responding to the matrix include;

• The rising cost of rebuilding
  
• The cost of replacing lost assets
  
• Debts secured against assets
  
• Providing for your dependants
  
• Changes in marital status
  
• Accumulative leave from your job
  
• Your health
  
• Your spouse/dependants health

This matrix is a good starting point, but working through your risk management alone, can be a daunting task. 6-Point Insurance has comprehensive and competitive insurance products available that you may find will suit your needs. Making time to ensure you are managing your risks effectively now, could make the world of difference in the future. Don't adopt the ”It won't happen to me attitude”.