Most people, if asked, haven’t a clue what income protection really is. It’s actually fairly simple to explain:
Income protection protects your salary
If you become injured or ill and can’t work, income protection pays you a portion of your salary until you can return to work.
How long could you last without a salary?
We found that most people couldn’t make it for a month before financial hardship would set in. So, it’s easy to see how important income protection is. We are good at making excuses not to join. In reality, it is very important to cover one of your most important assets – your salary
Excuse 1: “I’m young and healthy. It’ll never happen to me.”
Truth: You actually have a 40% chance of suffering a disability or illness that keeps you out of work for 60 days or more at some point during your career. So you could be one of the lucky 6 in 10 but what if you’re not?
Excuse 2: “I could survive on social welfare benefits.”
Truth: Could you survive on social welfare? How much are your mortgage repayments alone? What other outgoings would you have to stop paying?
Excuse 3: “I think I have some sort of cover through work.”
Truth: Some employers have cover for their employees but it’s more than likely you don’t. Most private employers don’t offer long-term income protection. If you’re a public servant you would have seen your sick pay benefits slashed this year.
The bottom line is this: If you a full time employee, self employed or a company director, and if your family relies on the money you bring home every month, you need income protection.
What you need to do is:
- Find out what income protection coverage and sick pay you have at work (short-term, long-term, both or none at all). Your HR department can help you out with that. Ask how much you get paid and for how long.
- If you have an income protection plan already in place, it is no harm to review your existing cover as premiums have fallen in recent years.
- Put an income protection policy in place to make sure you’re taken care of if something were to happen to you. Different insurers have different benefits and premiums, so it is worthwhile to find the best plan for you. We can help you find a policy that suits you and your budget.
Remember you get tax relief at up to 40% (your marginal rate) on your premiums.
If you would need a hand or have any questions, simply contact us to discuss your requirements.