The Reasons You Don’t Have Income Protection. Is It Worth The Risk?
How long would you be able to support yourself for, if your income were to stop tomorrow? You need to know the answer to this question if you want to be able to protect your family from any unexpected financial problems.
Do you remember when we were children and our parents used to tell us to wear sunscreen, not run carrying a sharp object, put on a bike helmet etc. – These were all to protect us from risk and injury? So why wouldn’t you also protect your family from losing their most important and essential asset – your income.
Most people don’t consider income protection that important. Many think they are young and healthy, and nothing will happen to them, or their company benefits will cover them during any hard times. This is where we take our ability to earn an income for granted; we never consider the possibility of an illness or injury leaving us unable to work for months or years. If you are not prepared and get sick or injured, it will be financially challenging to maintain the same standard of living.
Cost is also another one of the reasons why people avoid getting income protection insurance. However, in the long run protecting yourself and your family is surely worth a lot. So, to help you make a clear and informed decision about income protection insurance, let’s discuss the basics:
What Is Income Protection Insurance?
Income protection insurance is an insurance policy that will cover up to 75% of your income if you become unable to work due to an injury or an illness
Don’t get confused, it’s not the same as critical illness insurance, which pays a lump sum if you get diagnosed with a critical illness. Insurance companies, such as Aspect will cover up to 85% of your income, to ensure you and your family can maintain your standard of living and stay on top of your financial responsibilities, during tough times with your health.
You won’t have to worry about your financial obligations; you can just take the time to rest, until you are full recovered and can begin working again. It covers most illnesses that leave you unable to work, depending on the type of policy you choose.
Income protection insurance does have a waiting period before the payments start. The longer your waiting period is, the lower the premium will be. Another plus with income protection insurance is that you can claim the benefits, from multiple injuries or illnesses during the life of the policy.
Is Income Protection Really Worth It?
Well, we can’t find any reason why it is not worth buying! There are thousands of people every day who get ill or injured, and many of them are employed. Once they become ill or injured, they can’t go to work and as a result can’t pay their bills.
So, which is better? Not being able to pay the bills or getting paid while you rest and recover until you can get back to work? The financial help you can receive from income protection each month will make your life much easier during an already stressful time. So how could you think it isn’t worth it?
When looking for income protection insurance, everything depends on finding the right insurance company and the right policy for you and your family. So, always get advice from an experienced and independent adviser or broker to find the best policy to suit your lifestyle.
Mike Wallis
Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.
