If you’re employed or self employed, you should consider lncome protection Insurance.
By using this strategy you could:
Many people insure their home and contents. even their life. Yet. all too often, they don’t adequately protect what is potentially their greatest asset – their ability to earn an income.
Think about it this way. If you are unable to work for an extended period due to illness or injury, how will you meet your mortgage repayments and other bills and expenses? Without an income, you could run down your savings very quickly and face financial difficulty.
Rather than putting your family’s lifestyle at risk, by taking out Income Protection insurance, you could receive a monthly benefit of up to 75% of your income to replace your lost earnings while you recover
Most Income Protection policies offera range of waiting periods before youstart receiving your insurance benefit(with options normally between 14 days and two years).
You can also choose from a range of benefit payment periods, with maximum cover generally available up to age 65. A financial adviser can help you determine whether you need Income Protection insurance. They can also review your insurance needs over time to make sure you remain suitably covered. If you’re in any doubt about the importance of protecting your income, the table below shows how much you could earn by the time you reach age 65.
For example, if you are currently 35 and earn $80,000 pa, you could earn around $3.8 million before you turn 65. Isn’t that worth protecting? To estimate your future earnings capacity, a calculator can be accessed at mlc.com.au
|Current income (pa)||Age Now|
|Assumptions: Income increases by 3% pa. No employment breaks. Figures rounded to nearest $10,000.|