Most people wouldn’t consider going without car insurance. Although we don’t expect to have an accident every time we get behind the wheel, we are aware of the possibility and take precautions to protect our vehicle and our finances accordingly. Strangely enough, when it comes to our income, many of us don’t provide ourselves with the same level of protection.
When you have dependents or debts, your regular pay cheque is essential for you to maintain your lifestyle, pay off your home loan and support your loved ones. It may seem unlikely that you will die prematurely, or become permanently disabled and unable to work, but it is sensible to plan for the possibility. Income protection insurance is designed to give you a regular payment in the event that you suffer an accident or illness which prevents you from working for a significant period of time.
If you are earning an income, you can apply for income insurance and you may be able to get cover for up to 85% of your regular salary after a specified waiting period. Make sure you consider separately insuring any non-income earning partners in the household, particularly if they are involved in home duties or raising young children as the incapacity of a non-income earning partner can also have a financial impact on the family.
The cost of income protection insurance varies according to a number of factors including age, gender, how high risk your occupation is considered to be and what level of cover you are looking for. Generally the lower risk your occupation and the less your perceived chances of dying early, the lower your premium cost will be. You protect your vehicle; why not protect your family’s future? For more information about income protection insurance, speak to a financial planner today.