Income Protection provides crucial financial protection for people by paying 75-80% of their income when they are ill or injured and unable to work. People think a lot before purchasing income protection insurance online quote because they don’t feel it’s worth their money.
Most people feel they are healthy, young, and they have low-risk jobs. So, they don’t insure their income stream, but is it true?
Here are some reasons why income protection is important and worth your money:
Think about whether your income is important to you
Most of the people rely on their income for all of their expenses like food, utilities, rent, mortgage repayment, and education expenses. Have you imagined how you are going to manage all the expenses if your income is taken away due to uncertainties?
If you don’t have any other alternatives, then the ability to earn is people’s valuables asset. Most people insure their property, vehicles, and other valuable assets, but very few protect their income.
If your uninsured vehicle gets destroyed, it might recover in a year. But if your uninsured income goes away, all the expenses are going to pile up, and it is going to take a lot more to recover. Perhaps you might not be able to recover completely from such a huge financial loss.
Uncertainties can happen
The probability of losing your ability to earn significantly low, but if it happens, you are going to face a massive financial crisis.
Have you ever thought, if you get struck by accident and need to take a break from your work for five years, then it will get difficult to take care of your family and manage your financial expenses?
The future is unpredictable, we don’t know what will happen in our life in the next minute, and accidents won’t knock our door before coming to us. One must take the precaution so that their family doesn’t have to suffer if they are unable to work.
These are the fundamental risks which must be considered.
Consider how income protection can protect you
If anything uncertain happens and you are unable to work, you will have few options to cover you.
Savings: You can use your savings to fulfill your and your family’s needs, but what after you are out of your savings.
Assets: If you have a lot of assets, you can sell them to pay mortgages, rent, and other expenses. But are you going to get a good price for them when you are in need? Or will you get a tenant to buy them?
Income Protection: Income Protection helps you to overcome your expenses if you are unable to work without using your savings and selling your assets.
Income Protection is tax friendly
You don’t need to pay for income protection payouts; they are tax-free as you pay premiums from your net income.
It is essential insurance, which is why the government permits tax deduction on it.
About the Author
Christian Taylor, is an assistant insurance agent at Aspect Underwriting- a boutique insurance agency in Melbourne that provides a wide range of insurance brokering and cover services including online Accident, Health, Trauma, and Income Protection quotes. Reach out to him at email@example.com to discuss your insurance needs.