Income protection will pay you an income should you not be able to work due to sickness or accident.
What is your greatest asset?
If you said it's your house, share portfolio or some kind of investment, you are wrong.
Your greatest asset is you... More specifically, its your ability to earn an income.
If you have a car, have your insured this? If you have a property, is this insured? Why? The reason is that you insure that which is valuable to you.
What about your income? If this is your greatest asset, is it then not of the greatest value to you? Doesn't it then make sense to make sure that you insure it.
Just think how devastating it would be to lose your income for a year, two years, five years or forever. How will this impact you, your lifestyle and your family.
Understaing The Variables That Is Income Protection
There are many different variables to income protection, each of these variables have an effect on what you are covered for. Some of these variables include
- Waiting period
- Benefit period
- Amount you can be covered for
- Payment structures
- Tax on income protection
- Occupation
- Evolution of income protection