What is your most important asset? Your house? Your car? No, it is your ability to earn an income, in fact your financial success depends upon it. A 40 year old earning $40,000 a year (and increasing at an annual rate of seven percent per year) would earn $2.5 million by the time they retire. Although most people insure their house and car against loss very few protect themselves against an inability to work and the resulting loss of income. One can only assume the reason for this is that most people do not expect to lose their ability to work.
Statistics show that more than two out of every five people suffer illness or injury for longer than 6 months during their working life and one in every one hundred people is likely to suffer a major disability each year. Without adequate protection a prolonged absence of income could have a devastating effect on a family’s standard of living. It could result in a serious depletion of their retirement savings.
Have you ever considered what would happen if you lost your ability to earn? Who would pay your bills and continue your savings plan?
Income Protection is designed to protect a family’s income position and restore the income should the earner lose their ability to work or any length of time through illness or accident.
Self employed people accustomed to a high standard of living in particular need this form of cover. They are often in stress related occupations and in many cases have high commitments on mortgages as well as high standard of living to maintain.