Ask a number of people what’s their greatest asset? You will get a variety of answers; car, home, or savings.
But what if I was to tell you your greatest asset is your ability to earn an income.
Let’s look at Brad.
Brad is 35 years old and earns $80,000 a year. By the time he is 65 years old he would have earnt around 3.5 Million Dollars. That’s if Brad stays relatively fit and healthy during the next 30 years. However what happens to Brad’s income when he unfortunately becomes the one out of two men to be diagnosed with cancer? How does his family cope financially whilst assisting Brad through his treatments?
- What happens if you become unable to work due to illness or injury?
- How would you pay for your living expenses; your mortgage or rent, groceries, petrol for the car or your children’s school fees?
- How long will your savings really last?
We all happily insure our home, our cars even our pets health, but only 31% of Australians insure their income. Sounds a bit silly, when the majority of us need an income to survive.
Income Protection is a type of insurance designed to replace your income if you are unable to work through illness, injury or major trauma. It is designed to cover your living expenses so you don’t have to worry allowing you to focus on getting better.
Income Protection Insurance is a monthly benefit that pays you up to 75% of your income and depending on the type of cover, you could receive a monthly payment until you return to work or if you are unable to return to work then until retirement age, currently being 65.
In most instances Income Protection Insurance is 100% tax deductible, helping you to reduce your income tax while giving you peace of mind.
Income Protection should be a real consideration for anyone who is relies on an income.
Like all insurance policies there are various levels and types of income protection, and even some that are occupation specific, therefore we strongly recommend that you seek professional advice from a Financial Planner as to the correct policy to protect you and your family.
At The Wealth Centre our Financial Planning team is more than happy to chat to with you about Income Protection Insurance and the options available to give you and your family peace of mind. Call our friendly team on 1300 132 648 to book your consultation.
