Did you see the news story about Eddie Griffin, a comedian from the U.S., who wrecked a rare Ferrari Enzo estimated to be worth NZ$1.69 million?
It made headlines around the world.
A person who owned something worth NZ$1.69 million would insure it right?
Wrong!
There are many people who will earn over $2 million in their lifetime and haven’t protected it with insurance. For instance, a 40 year old on $55,000 p.a. whose salary increases by 3% p.a. will earn over $2 million by the time they turn 65.
The biggest reason people don’t insure their income is the perceived cost. However, using a small percentage of the income to protect future income is a much smaller cost than losing future earnings due to sickness or injury.
Like the owner of the Ferrari Enzo, you never know what’s round the corner.
It made headlines around the world.
A person who owned something worth NZ$1.69 million would insure it right?
Wrong!
There are many people who will earn over $2 million in their lifetime and haven’t protected it with insurance. For instance, a 40 year old on $55,000 p.a. whose salary increases by 3% p.a. will earn over $2 million by the time they turn 65.
The biggest reason people don’t insure their income is the perceived cost. However, using a small percentage of the income to protect future income is a much smaller cost than losing future earnings due to sickness or injury.
Like the owner of the Ferrari Enzo, you never know what’s round the corner.
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