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Wishful Thinking Best Left to Others: Don’t Skip Income Protection

Why best case scenarios concerning income fail to protect your interests.

What is your biggest asset? Your home? Your business? Your yacht? No matter how many assets you have amassed, your biggest asset is your ability to earn income. Without the ability to earn income, the other assets are not possible unless you already have more money than you can ever spend.

Don’t Skip Income Protection

Therefore, it is important to protect your biggest asset with income protection. Income protection cover protects you in the event you are unable to work due to injury or illness. Usually, it pays around 75% of your income until you can get back to work. Income protection cover is tax deductible and you can spend it on whatever you choose to spend it on.

Determining the Cost of Income Protection Insurance

Numerous factors go into determining the price of income protection insurance. Whether or not you smoke, your age, your gender, your occupation, your health, your income and the amount of desired coverage are all factored in to the price. Most people choose a financial planner to advise them on how much cover they need.

Why Income Protection Cover is Important

Income protection insurance fills in the gaps that other coverages leave out. For example, a standard sick leave entitlement may be 12 days a year that you can take off due to illness or injury. Workers Compensation covers you for injuries but not illness. Private health cover helps defray medical expenses and hospital stays, but doesn’t cover incidentals such as mortgage repayments, electric bills and food. In most cases, Government disability insurance won’t pay nearly enough to sustain your current lifestyle.

Call Approved Financial Planners

At Approved Financial Planners, we provide a full range of services in the Perth area, including financial planning and insurance. That means that we can advise you on how much insurance cover you need and provide you with insurance from a respected and reputable company.

We also offer other services, such as retirement planning, establishment and maintenance of superannuation funds and self-managed superannuation funds, wealth protection, investment planning, estate planning and a plethora of business solutions.

For help from financial planners and insurance consultants who care about you, call (08) 6462 0888.