Income Protection will cover part of your income if you are suddenly unable to work due to injury or illness. Think of Income Protection as your safety net.Show video script
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If life were predictable, It wouldn’t be nearly as interesting. There’s inevitably going to be some stuff happen along the way, Some of it good, some of it not so good. While you probably don’t want to think about the bad stuff that could happen you’d be wise to have things set up to cover yourself if it does. Of all the insurances you can consider, Income Protection is a biggie.
Put simply, your savings are going to be sucked away pretty quickly if you suddenly find yourself out of work for a few months. Income Protection will replace part of your income when you are suddenly unable to work due to injury or illness. Believe us when we say an ‘ill take care of it later’ attitude, doesn’t cut the mustard. Think about insurance as your safety net, your back up plan, whatever works for you but put something in place.
To make things a bit clearer let’s run some numbers, yes numbers, they’re important. Your annual income is $80,000 you have an accident that leaves you unable to work for six months, lets say something involving an escaped circus animal, just to make it interesting. Your sick leave pay from work is around $7000, how are you doing now? 6 months with only $7000 dollars? Unless your planning to live in a tent and eat tinned soup you’re in trouble!
But because you were smart and listened to the wise words we are now imparting, you took out Income Protection insurance to cover 75% of your income, your insurance company now pay you $30000 over the 6 months and you’re laughing...even though it hurts. Your expenses are covered, you have peace of mind and you can recover from your injury worry free.
If you’re like most of us your lifestyle and its expenses have been designed around your income, it is your most powerful financial asset you need to protect it.
For more information about protecting yourself against risk get financial advice right here...
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