"Its great to hear how James is recovering from his heart attack, it must have been such a traumatic time" said Brenda. "It has been very stressful but the results have been very promising and James is expected to make a complete recovery, the doctors said that because he has been able to focus on his recovery the rate of healing has been sped up" commented Julie "not worrying about money has enabled us to focus on Jamess health". "James must be employed by a great company for his income to continue" commented Brenda. "Oh no" Julie replied "James had arranged income protection insurance many years ago and we have been receiving a monthly payment since the heart attack".
Many people believe because they are employees they will still receive an income if something should happen to them. In most cases they are wrong! The reality is that the majority of disabilities come from illness related conditions (over 80% at age 40) and only a portion of accident claims are work related.
How would you survive if the income for your family suddenly stopped? Could you afford to pay for your mortgage, your car repayments or feed the family? In many cases the answer is no.$3,250,281
is the amount a 25 year old will earn through to retirement based on a current salary of $40,000.
We all insure our cars which could be worth $30,000 or our homes that may cost $250,000 to replace, however we neglect the very asset that enables us to enjoy our cars, homes and lifestyles.
By arranging an income protection policy you can protect your future income. The cost of the insurance will vary on your age and occupation however in many cases the cost will be less than the cost of insuring your car. In addition the cost of income protection insurance is tax deductible which will reduce the net cost of the policy.
You have a choice; in the event of your income stopping you can be reliance or independence.
You can rely on your family, the Government or friends to provide for all your future financial needs. Or you can be independent, by arranging income protection insurance you will ensure your financial future, quality of life and self esteem.
In assessing the best policy for an individual it is necessary to assess the conditions of a policy. Some important conditions to consider are:Definition of Disablement
Agreed or Indemnity
Offsets in event of claim
Maximum benefit Period
It is also necessary to assess the claims settlement and process capabilities of the insurance company you are dealing with.
Your Australian Financial Services adviser can help you assess your needs and advise the most cost effective way to protect the financial risks ensuring you a worry free future.
This article is bought to you by Imperator Financial and Australian Financial Services
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