Income, of course, is the backbone of our financial plans, and in the lives of many people there is no larger asset to protect. Considering that life has a remarkable knack of throwing obstacles in our way at times, what would happen if your income was to suddenly stop? How would you and your family cope? How would you manage to achieve your financial goals?
What income protection insurance does is protect your cash flow by replacing up to 75% of your income if you are unable to work due to accident or sickness. Although it is not intended as a replacement for workers’ compensation, sick leave, or private health insurance, it is a long-term solution that should be tailored to work in with these and other insurance types. It also is tax-deductible.
Case Study: Imagine If This Was You?
Roger was a 45-year-old landscaper who fractured his leg during a family outing. As he was unable to work for almost a year, the accident cost him more than $80,000 in lost income as well as all of his savings. He ended up having to rely on his aging parents to help him cover shortfalls such as rent and school fees. Due to the severity of the injury, he was unable to continue working in his trade.
Had he had income protection, with the appropriate conditions, he would have been able to recover without massive financial pressures, and may have even qualified for a partial income while he retrained for another career.
To avoid this type of scenario affecting you and your family, talk to Fusion for help finding the right income protection cover to suit your circumstances.
Did You Know? If you were a 40-year-old earning $75,000 per year, with an annual salary increase of 5% each consecutive year, you would earn $2.5m by the time you turned 65. (Isn’t that worth insuring?)
For an obligation free insurance assessment and quote, please contact us for details.