Income Protection Explained

Your ability to earn an income is arguably your most important asset.

Injury, Illness or disability can occur suddenly and affect your ability to earn an income. As a result, you may be unable to pay for your living expenses to maintain your desired lifestyle. Your savings and investment contributions will also potentially cease and as a result will negatively impact the success of your retirement plan.

We believe the best way to insure against this risk is via income protection which pays you a monthly income while you are unable to work (temporary or permanent). It is an effective and accurate way to manage the risk of being unable to continue your lifestyle and retirement goals because you are able to mimic the income you currently earn and grow it with inflation.

Traditional lifestyle insurance products generally pay lump sum amounts which help cover immediate expenses (repayment of outstanding loans, property alterations) in the case of being permanently unable to work, however we believe lump sum amounts should not be used to provide an income as income protection provides a more accurate way of meeting your lifestyle and retirement goals.

It is important to ensure that your unique circumstances are considered when calculating your income protection requirements. This will ensure that you are not under insured and put under financial distress in the event of being unable to earn an income, or on the other hand over insured and paying excessive premiums on cover that you do not need.

Please do not hesitate to contact us to find out more.