Income Protection insurance is your safety net for financial success.
Updated: Oct 20, 2021
If you’re working and haven’t yet reached the point of financial independence then income protection insurance should be on your radar. As the name implies, it can help you protect your greatest asset – your ability to earn an income.
I've had many clients who have needed to use this safety net. From broken knees (slipped on wet rocks at the beach), a torn Achilles tendon (playing touch football) through to cancer (prolonged treatment plan and a slow return to work) - you name it. Anywhere from 3 months to 12 months off work and they were all able still able to pay the bills, buy groceries, keep the kids in school etc. It was such a relief to them.
Income Protection is a practical and straightforward type of insurance and if I was to ask an insurance company to describe it - this is generally how they would say it works;
It's the promise to pay the policy owner a regular benefit, usually up to a maximum 75% of their normal income, if they are unable to work due to accident or illness. Payments are made after an agreed waiting period and continue until either the policy owner is able to return to work, or until the end of the agreed benefit period.
Income protection insurance is one of the very basics for a solid financial plan. Without an income - your plan can fail. If you can keep your income coming in, even if you're unable to work, then your plan can still succeed. And having that safety net in place means that you can walk forward with confidence.
Shaun O'Keefe thinks that families are important. He's found that he can help more people, more effectively when he helps families. As a fee-based financial planner, he works with families just like yours to bring personal values and financial resources in line so that you can keep focussed on the priorities in your life.
The information contained in this article is general in nature only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision concerning a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.