Income Protection - Do you need it?
So, what is your most valuable asset? Is it your home? Your car? Your superannuation? It is none of these..... Your number one asset is your ability to earn an income. This 'asset' allows you to pay the rent or mortgage, pay the bills, educate the kids, eat and generally live. Without an income you cannot do any of these things. So, how do you protect this asset? - with Income Protection insurance.
Income Protection insurance typically pays out up to 75% of your pre-disability income in the event that you are no longer able to work due to illness or injury. There is a specified waiting period before it kicks in, and then it will continue to pay that income for a specified benefit period. The shorter the waiting period and the longer the benefit period, the more expensive the insurance premium will be.
As a general rule the premiums for Income Protection are tax-deductible*.
How much sick leave do you have? If you were all of the sudden unable to work due to illness or injury, how long could you survive financially? If you already hold Income Protection insurance, is it an agreed value or indemnity contract?
Speak to a qualified financial planner to ensure that your most valuable asset is protected.
*The deductibility of premiums will depend on how the premiums for Income Protection are paid.