Our most important financial asset is our ability to earn income yet all too often we take this for granted. Most people will insure their homes, cars and other valuable assets however alarmingly few consider insuring their income.
If you became sick or injured and were unable to work, even for a short period of time, how would you pay the mortgage or rent, feed the family and pay the bills?
- WorkCover – you are only covered if the illness or injury occurred during the normal course of employment.
- Sickness Allowance – you will need to undergo the asset and income test, there may be a waiting period depending on your situation and the payment rate is $527.60 per fortnight for a single person – would this be adequate to meet your needs?
Income Protection provides cover if you can’t work due to illness or injury. It generally pays up to 75% of your monthly income for your chosen benefit period or until you are fit to return to work thus providing assurance. Being sick or injured can be stressful enough without having to worry about how the bills are going to be paid.
Anyone who earns income through employment should consider how best to protect it. The decision to have or not to have income protection insurance will depend on numerous factors including, your financial situation now and in the future, employment and remuneration conditions, income-earning assets, occupation and any lifestyle pursuits (e.g. sports played)
People who are self-employed, in particular, may be putting themselves at financial risk by not having income protection insurance. If you are the business and you are unable to work, what income is available to you? Income protection insurance should really be an integral part of your Business Plan.
Because there are many products available with many additional extras, finding the right income protection policy can be a daunting prospect. At Gillespie Wealth Management, we can take the hard work out for you and help you find the ideal policy and the best possible price.
As with all insurances and financial products, income protection should be considered as part of an overall financial plan.
68-70 Dundas Court
Phillip ACT 2606