It’s True!

Income protection insurance is a complete waste of time if you are one of the 30% of people that will not have any time off during their working life due to sickness or injury, but how do you know if you are one of the lucky 30%? The short answer is; you don’t.

For a lucky few through good luck or good management (or a combination of both) 30% of Australians will get through their working lives without any major sickness or injury, its something that all of us aim for, as the saying goes after all you have your health. Income Protection provides a safety net, a financial blanket that is the buffer between you and financial hardship as a result of time off work due to sickness or injury.

Take a minute to ask yourself, how long could you survive without a paycheque? For most people, with mortgages, ongoing living expenses, kids and car payments, within a matter of weeks the financial strain would begin to take its toll, as a wise man once said, ” you only find out who is swimming naked when the tide goes out”. Unfortunately with Income Protection its often only people who have suffered a severe illness or injury that see its incredible value.

For those who have cover in place, after suffering a serious illness or injury, first priority is immediate medical assistance, often followed very closely by a call to their broker, with baited breath, to check their cover is currently paid up and in force.

For those without income protection, in addition to their condition, there is that sickening, sinking feeling that comes with wondering how the family is going to survive whilst they are off work and unable to earn an income; wishing in vein that they had Income Protection.

Workers compensation may cover some cost and income but what if your time off work is not as a result of a work related sickness or injury? What if you are self employed and there is no workers compensation? Income protection provides peace of mind and locks in a financial safety net.

So is Income Protection Insurance a complete waste of money?

Of course not! For a small percentage of your income you can have the peace of mind of knowing that you will lock in a regular monthly income for the remainder of your working life. For the fortunate few that get to retirement age without any “financial downtime” due to sickness or injury, income protection has provided peace of mind, and for the rest of us, spending some time off work due ti illness or injury and having the financial security of a regular income, will make you a believer for life!