Have you ever thought about what you might do if you were deemed too ill or sick to continue working?
It’s hard to think about when you are perhaps - young, fit and healthy right? However, that is the best time to invest in income protection insurance as it’s easier to get, and there will be potentially less exclusions while you are fit and healthy.
Top reasons why you need income insurance:
If you don’t have enough money to afford to never work again!
You have a career with long-term solid income potential.
You are the ‘breadwinner’ in your family.
You have regular debts and expenses such as a mortgage or rent.
How much will it cost?
It all depends on your circumstances, but let’s say you are a 30-year-old female who is a non-smoker, on a salary of $50k per annum - you can get a premium cover for just $17 per fortnight - that’s $34 a month - less than a cheap takeaway for two! Of course, every situation is different so it is important to discuss this with your financial adviser.
I will be fine - it won’t happen to me
It’s easy to think we will stay nice and healthy until we are ready to retire, but unfortunately we can’t predict what will happen next. That’s why it is important you prepare yourself just in case. For example, a woman who was diagnosed with Parkinson’s disease at 56 years old was forced to give up work a few years later because of this condition. As you can imagine, it was already a stressful time having to deal with this illness, and on top of that there was the grief of giving up a career before feeling ready to do so. Luckily, one less thing to worry about was the loss of income, because she had income insurance. This meant there were payments coming in monthly up until the age of 65 when her pension would kick in. Another woman sadly had a nervous breakdown and said her income protection literally 'saved her life'.
So, while you are fit and healthy right now, it is important you consider investing in income protection insurance for your future. A financial advisor will work this all out for you and find the best cover for your individual needs.