5 Reasons To Consider Income Protection Insurance
Income Protection Insurance helps replace part of your income if you’re unable to work due to serious illness or injury. Below are five reasons why it might be helpful for you.
1. Maintain your existing lifestyle
Income protection can help provide an alternate stream of income allowing you to focus on getting back on your feet if prolonged illness or injury prevent you from doing your usual job. This may allow you to maintain your current lifestyle and help you to stay on top of bills or existing payments such as rent or mortgage payments, allowing you to focus on your recovery.
2. Reduce financial stress on family members and loved ones
Do you have other family members who are dependent on your income? It’s a good idea to consider income protection if you’re the sole earning family member. It may help ease financial stress on your loved ones if you’re out of action due to serious illness and injury.
3. You’re a small business owner or are self-employed
Owning your own business brings a great sense of pride and achievement. Being your own boss also means you don’t have paid benefits like sick leave and annual leave to fall back on if something happens to you. Income protection offers a financial safety net if you’re off work, so you can focus on your recovery.
4. Plan for the future
Whilst we may feel that we are fit and healthy, we often think there isn’t a need for income protection. But adversity can strike anyone at any moment. Consider having a plan in place if the unexpected happens. How would you cover your existing ongoing expenses like rent or loan payments?
5. Possible tax benefits
Your income protection premiums are generally tax deductible if you hold a policy outside of super. There are options and flexibility to lower your premium. Choosing a longer waiting period before you start receiving your benefit is one of them. If you need help and want to discuss the options that are best suited to your needs, I’d be more than happy to have a chat.
GENERAL ADVICE WARNING
The advice contained within this document does not consider any person’s particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product, persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make their assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information within this document. Persons doing so, do so at their own risk. Before acquiring a financial product, a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.