Last week I went to Sydney for a conference on one of the areas of financial planning that I feel is so critical, that if you do not incorporate it into your portfolio, then there is no real point in taking any further steps – by that I mean incorporating personal risk insurance into your portfolio.

No doubt many of you are aware of life insurance, insurance for total and permanent disablement, and income protection. A relatively new concept that has been around since the early 1990’s is known as Trauma or Critical Illness insurance – this type of insurance basically pays out when you catch the disease that is going to kill you.

Think you are bullet proof – well consider the following facts that came out of the conference:

Every hour of every day in Australia:

31 babies are born;

15 people die; and

47 people are diagnosed with a critical illness.

Everyday in Australia, 32 women are diagnosed with breast cancer.

Approximately 53,000 Australians will have a stroke every year.

But you are fit and healthy I hear you say, this will happen to someone else. Well, a leading cardiologist at the conference pointed out that 60% of 30 – 39 year olds and 71% of 40 – 49 year olds have some degree of coronary disease. But I am sure that does not affect you, although coronary disease does generally start when you are in your early 30’s.

A quick question for you and your investment portfolio (or more precisely your family), when you have your first heart attack, what are you going to lose – your house or your mortgage?

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