Income Protection Insurance
Posted by: TJL Accountants & Advisors | On: August 13, 2018
What is your most important asset?
Many people would say their house, if they are fortunate enough to own one, but have you thought about the effect of losing your income? How would your family cope with everyday bills and expenses, let alone unexpected medical costs or any holidays you have planned? Consider a 40 year old who is unable to return to work due to injury or illness. The wages they forgo for the next 25 years are their most valuable asset. You may have home and car insurance in place, as well as mortgage protection insurance and even pet insurance, but ultimately what’s most valuable is your ability to bring in an income.
If you are unable to work because of illness or injury, Income Protection insurance generally pays you a monthly payment of up to 75 per cent of your income while you’re not working. It can also provide for super contributions, so retirement plans don’t necessarily go up in flames if your capacity to work changes.
Income Protection insurance means you can rest easy, knowing that if you were unable to work for a period of time your family could still manage and continue their current lifestyle – and it also means that any long term plans you had in place, or goals you were working towards, could still be achievable.
Think you’re already covered for any unexpected interruptions to your working life? You may be – many super funds provide automatic cover for death and total and permanent disablement. However, in the event you were temporarily unable to work due to an illness or accident, this cover would not protect you. That’s why Income Protection insurance is so important.