Income protection critical
ARE your house and contents insured?
What about your car?
If you go overseas do you take out travel insurance?
Most of us recognise the importance of protecting the assets we have accumulated over the years and rightly so – we’ve worked hard to get them.
But have you ever thought about protecting your ability to work?
After all, it’s your income that enables you to own a house, maintain a car and take holidays.
It’s worth thinking about what would happen to the assets you have built up and, more importantly, your family, if you were unable to earn an income.
How would you pay for weekly expenses and bills, let alone mortgage repayments and school fees?
Fortunately there is a way you can protect your biggest asset.
Income protection insurance can provide you with up to a 75% replacement income if you are unable to work due to illness or injury.
The benefits are yours to spend as you choose and premiums are tax deductible.
If you’re lucky enough to be fit and healthy, then it’s tempting to think that it will never happen to you.
But the unfortunate reality is that misfortune can strike at any age, when you least expect it.
Every day, over 65 families are impacted by an event that seriously affects their ability to earn an income.
The best time to take out insurance is when you are in good health.
As you age, you can suffer health-related issues making it more difficult to obtain cover.
Many people believe they are adequately covered elsewhere.
But your safety net may not be as robust as you think.
Sick leave entitlements may only cover you for a limited amount of time.
Workers compensation covers illness and injury associated with the workplace, but many serious accidents occur elsewhere and Social Security payments are unlikely to allow you to maintain your standard of living.
Income protection should be an integral part of your overall insurance needs, which can include life, trauma and total and permanent disability cover.
A Certified Financial Planner can help you work out the right level of insurance for your family’s particular circumstances.