If only making money was as easy as spending it…
But what if, for whatever reason, your “essential” money stopped coming in? The money you use to pay your rent, your mortgage, your food, your telephone bills and all those other essentials? This happened to Laura, 28, who was taken ill with chickenpox. After taking a week off work, she thought she was on the road to recovery – then the vomiting, seizures and a stiff neck began. Her doctor diagnosed her with serious secondary encephalitis and she was hospitalised immediately. Laura recovered, but was unable to return to work for
Now it’s true that no one wants to think about these situations. But all working people should think seriously about protecting their ability to earn an income through taking out income protection insurance. The good news is that income protection is generally a 100 per cent tax deduction.
So how does it work? Most covers will provide you with up to 75 per cent of your normal income should you be unable to attend work due to illness or injury. And most will give you a choice of optional benefits such as family care and severe disability options. While no one enjoys paying insurance, income protection really is one of the “must-haves”. Without it, should illness or injury occur (and it easily can), you could potentially wipe out your savings, just to cover living expenses. Or even go into debt. That’s somewhere no one enjoys being.
Seeing a financial adviser can be a great way to get your finances and savings into gear – and at the same time look at income protection cover.