Skip to main content

A common misconception about income protection insurance is that it’s only for high-earners, but this isn’t the case. In reality, no one can afford to be without this safety net, regardless of the amount of income you earn.

The only things certain in life are death and taxes—or so the famous saying goes. Thankfully, income protection insurance can add a positive guarantee to that list by safeguarding your quality of life, should an unexpected setback strike. 

You can’t predict the future, but you can plan for it
Nobody wants to consider an accident or illness impacting their health suddenly, but it’s a very real possibility. As well as changing your lifestyle, an unexpected illness could mean you need to take extended leave from work.

It’s estimated that over 400,000 Australians suffer a heart attack sometime in their lives.
i Then there’s over 800,000 people of working age with disability, who were not working in 2015 alone.ii It’s tempting to think that if you lead a healthy lifestyle and make smart choices, you’ll be fine. But the reality is you can’t predict the future, you can only plan for it.


Why it’s not about the amount you earn
One of the biggest myths surrounding income protection insurance is that it’s only necessary for those who are paid high incomes. In reality anyone who is part of the workforce will benefit from the protection and peace of mind that this insurance provides, regardless of what they earn or their stage of life. Think of income protection as your own personal cavalry ready and waiting to come to your rescue should you need it.

Consider what you and your family would do if you were unable to bring home the same pay cheque overnight. Remember, periods of unemployment due to sickness or injury are reasonably likely over the lengthy course of anyone’s working life.

Parents, particularly single-income families, have the consistent pressure of providing for their children. While it might appear smarter to give precedence to other family expenses, this demographic can be hit hardest in such events, making income protection insurance a must.

Another misconception is that singles or couples can forgo income protection. Although finances might be comfortable day-to-day in a steady job, things may not always be so stable. It makes even more sense for the self-employed or small-business owners, whose monthly income can often be inconsistent, to consider income protection.

Then there’s the trap of thinking life insurance is all you need. Unexpected death is absolutely a part of life we should all plan for. But an unforeseen total or partial disability due to injury or illness is a debilitating situation that can stop you earning a living, and is equally unwise to overlook.

What does income protection cover?
So, how does income protection insurance cover you? Up to 75% of your monthly income is provided or a nominated period of time to help keep your household up and running and provide for your loved ones while you recover. In a nutshell, it gives you the freedom to rest easy knowing you’ll be taken care of financially.

An inability to keep up with the mortgage, loan or credit card repayments can cause considerable stress when you’re unwell. It’s crucial to focus on recuperation at such a time, with full confidence that these debts can be provided for under your policy. 




Comments

Popular posts from this blog

Times are tough. How can you position yourself to minimise the impact?

The last few weeks have been extraordinary to say the least. We’re battling a world wide health crisis and we face uncertainty in many aspects of our lives.  It’s true that there are simply some things beyond our control and we will more than likely see many changes to our everyday lives for the remainder of 2020 and beyond. So, what can be done?  On the other side of this, many people will be left with dramatic financial stress, whether it be periods of unemployment, depleted cash reserves or battered superannuation balances.  And for many, timing will be an issue. Those who were weeks ago contemplating retirement may now need to change their plans. And those that are still accumulating for retirement have more than likely just seen their investments and superannuation return to levels of 5 or 6 years ago. Essentially the clock has be wound back in one way or another.  It may well be a good time to take stock and lay some foundations for when things do recover (which they

Hindsight Wealth Office Walk Through Message

When Socks and Jocks don’t cut it anymore.

We have a solution  to avoid the old favourites: socks and jocks this Father’s Day.  As this weekend is Father’s Day, the focus should be on Dad.  You can purchase the actual book or the digital copy  so Dad can access year - round savings from his smart phone.  Part proceeds from your purchase, also helps a local Brisbane charity:  Be Uplifted Inc Breast Cancer Charity – so everyone wins!  Click here  to purchase Dad his Entertainment Book subscription. Another gift you could give Dad is encouragement.  To encourage Dad to have a conversation with a financial adviser about his super and insurances.  Why?  Maybe Dad has started a new job or had a promotion. Maybe Dad is nearing retirement? When our lifestyle changes or work situation changes, it affects your super + insurances. Reviewing these regularly will make sure Dad stays on track. Perhaps you know Dad has a few super funds hanging out there from previous jobs. This can affect a few things – especially Dad’s back pocke