I was unlucky enough to go through childhood cancer when I was nine years old. My left leg was amputated above the knee, and I went through a relapse where my chances of survival were only about 10%. I also lost my mum to early onset dementia when she was 59 years old. So I was forced to learn from a very young age that life can be really unpredictable – and that it’s also really, really precious.

 

As we all get older and navigate different stages of life, we unfortunately might go through a whole range of tough, often unexpected experiences, or see them happen to the people we love.

 

For me, financial wellbeing isn’t about being rich or having enough money to not lose any sleep at night. It means having a solid protection plan in place that will help me get through any tough times while I focus on being excited about the future, about achieving my goals, and about spending time with the people I love.

We know there’s a sexy side of financial planning: building wealth, making sure your superannuation is set up for your retirement, and maybe setting up other investments. But no one likes to talk about what you’ll do if things go wrong.

 

Our financial wellbeing affects our physical and mental health: our feelings, thoughts, and perceptions about finances affect our overall wellbeing. It’s an important aspect that is often overlooked.

 

If you ask me, the most important part of a financial plan is making sure you’re covered for the ‘what ifs’ so you can focus on doing all the things you love. So much of my joy comes from spending time with my family and building wealth. I need to know that if something were to happen to me, at any point in my life, my family will be okay and my income will be safeguarded.

I like to talk really honestly about life insurance. Chances are, the horrible things won’t happen to you – but there is still a chance. And the last thing you want is to go through a claim only to find out that your insurance policy is not going to pay out. So it’s worth knowing the different types of protection and what they cover.

 

A solid protection plan with the right insurance cover is all about making sure that if anything were to happen, your long-term goals aren’t put in jeopardy. I like to think there are four major life milestones that are great triggers for making sure your protection plan is up to date.

Often people think you only need to worry about life insurance when you’re well into your thirties or your forties and you’re establishing yourself. But the moment you get your first job is a really good time to start thinking about life insurance. A big career change or a significant promotion can also be important moments to check in on your cover and ask practical questions. How would you navigate a period of, say, two years if your income stopped because you were injured or unwell?

When you marry someone, you become a team. Suddenly, it’s not just you that you have to worry about – you’re in a partnership. So it’s an important moment to ask yourself: What if something were to happen to one of our team members unexpectedly, or as we age? What would we do if one of us needed to stay home and care for the other for a period of time?

When you have other people who rely on you, and when you rely on other people, there’s no room for umming and ahhing. It’s vital to understand how the entire family unit and household would be affected if certain things were to happen. For example, how would they cope if your income were to stop for a short period of time, or indefinitely?

For a lot of people, their first home is a huge purchase and it might become their biggest asset, alongside superannuation. It makes really, really good sense to make sure that you’ve protected your ability to stay in the home you’ve bought. Consider how you would repay your loan and cope with the rising cost of living if something were to happen.

 

No matter what stage of life you’re at, my biggest piece of advice is to review your protection plan every three to five years. At the end of the day, you only want to be paying for exactly what you need if tough times ever did eventuate.

Building a protection plan is as straightforward as thinking about where you are now, where you want to get to, and what you want to happen financially if a tough time comes along.

 

A financial adviser can help you navigate that journey and prompt you to ask yourself the tough questions. 

 

Together, you’ll look at your cashflow and budget – where your money is going, how it could potentially build wealth, how your superannuation is set up – and they will recommend a plan to make sure the things you want to happen can happen, no matter what life throws your way.