Your Most Valuable Asset
The whole point of personal risk insurance is to ensure financial stability for you in the event of you dying or becoming disabled or seriously ill. Should any of the above happen to you, you may lose your ability to fund your lifestyle.
Your greatest asset is your ability to earn a substantial income and without it your lifestyle and future goals would be affected negatively. Most working people who die in NZ die from a serious illness (cancer, heart disease or stroke).
Once people develop a serious illness their ability to work and earn an income diminishes, even after recovery. This is called commercial death. Generally, commercial death precedes medical death. So, if you developed a serious illness then there would be a period of low income before any death benefit was paid out.
"Time and health are two precious assets that we don't recognize and appreciate until they have been depleted."
HOW MUCH WILL YOU EARN DURING YOUR LIFETIME?
Most people earn a small fortune during their lifetime. Yet many of them are unaware of how their annual income adds up over the years.
Assuming that you start work at age 20 and retire at 65 you are likely to earn somewhere between $6 million and $9 million in your working career! As a married couple your combined earnings could be as high as $12 million to $15 million.
You can work out how much this could be for you at:
If you have a bachelor's degree you will earn about three times as much money than an individual who dropped out of high school, and a bit under twice what a high school graduate might earn. Interestingly, a master's degree doesn't provide that much of a lifetime earnings premium over a basic bachelor's degree, nor does a PhD deliver much additional income over a master's degree.