To Insure or not To Insure

Having recently reviewed our personal insurances, my hubby and I were chatting to a newly pregnant friend about income protection insurance.  On the fast train to 40, income protection insurance can be expensive.  My friend concluded the monthly premium could be money "better spent elsewhere".
Personally, I find this extraordinary.  People, without question, insure their car, house and home contents but often fail to see the enormous importance of insuring one's ability to earn money.  After all, if the main breadwinner is laid up in bed for several months, even years, how will all those "fixed" insurance costs get paid?
Yes it is expensive, but can you afford to not have it?
What would you do if you suddenly lost one income and not only that were faced with medical and hospital bills?

The other thing is that it can also be a headache to complete - and becomes "all too hard" basket.  A simple increase in our insurances meant completing the entire application again only to be faced with, a week later, a "we've received your application but have a million more questions" letter.  It doesn't matter how good your financial adviser is or how great the product compares, there is no getting away from the fact that this needs some time and effort to complete.  Put aside the time.  Answer the questions or get the statement from your doctor and then send it off.
We are not immortal.  Anything can happen, at any time and any age, so be prepared.

And of course, income protection premiums (not paid through super) is tax deductible.  Prepay the annual premium upfront for an even bigger deduction.