While it might be considered straightforward, income insurance can vary to suit needs and budgets.
Your greatest financial asset is, most likely, your ability to earn an income. However, while the overwhelming majority of people insure their homes, their cars and their valuable possessions, few even consider income insurance. If you got sick or had an accident and were unable to work, how would you pay the mortgage, feed the family and generally have enough income to survive?
For some people the answer could be simple – they may have enough income-earning assets or savings to continue to support their needs; their superannuation may include salary continuance that pays an income while they are out of work due to illness or injury or, if they suffer a work-related injury or disease, they will be protected by WorkCover.
However, for many of us, if we don’t work we have no income. When all else fails, you may be eligible for social security benefits – but will this be enough to meet your needs?
Income protection insurance pays you an amount of money, usually monthly, if you are unable to work because of sickness or injury. It can provide security. However, as with all insurance products, you need to consider whether you actually need it and, if you do, you need to ensure you get the right amount of cover at the right price.
Everyone who earns employment income should consider how best to protect it. The decision to have or not to have income protection insurance will depend on your financial situation now and what is likely in the future, your employment and remuneration conditions, your level of income-earning assets, your superannuation scheme and your occupation.
People who are self-employed, in particular, may be putting themselves at financial risk by not having income protection insurance. If you are the business and you are unable to work, what income is available to you?
If you have been considering protecting your income and thinking about the future, then its time you contact our office and discuss it in further detail. Make the time to come in and see us and we will be more than happy to talk you through the process.
Review regularly Financial planning is a dynamic process. Regularly reviewing your investments, refraining from knee-jerk reactions, understanding market volatility and staying the course can lay the foundations for a prosperous retirement.