INSURANCE

Income Protection

by Peter Moore

Most people recognise the need to save and build wealth for their future key lifestyle needs and goals (retirement, saving for their kid's education, buying property, cars, holidays etc.) However, many people overlook the protection of the factor most key to this.....our own ability to earn a living for ourselves and our families. Income Protection can be used to help bridge the gap when illness or injury stops us from doing our key function, providing an income for ourselves and our families.

Whilst life insurance provides for your family when you are gone and critical illness/dread disease insurance pays out if you are unfortunate enough to suffer and be diagnosed with one of thirty defined 'critical illnesses'; neither perform the role of income protection should you not die or be prevented from doing your job by reasons other than death or critical illness.

This is where income protection has an important role to play: Most employers will only continue to pay their employees for a fixed period e.g. 6 months, if they are incapacitated and unable to perform their employment duties. However, the statistics regarding the number of people that are prevented from earning a living (due to illness or injury) is far greater than many realise. Many also do not realise the severity of the strain it can put on both the financial and emotional well being of the individuals and families involved.

The cost of obtaining income protection is often minimal compared to the cost of not having adequate income protection cover.

Insure your most valuable asset: Your ability to earn an income!