If you’re a 35-year-old Australian with an annual income of $80,000, you could earn around $3.8 million before your 65th birthday. Considering its multi-million-dollar value, the ability to earn a living might just trump houses and cars as your number one personal asset.
If you’re looking to help protect that asset, you may wish to consider taking out an income protection insurance policy. In some cases, the policy’s premium may be claimed as a tax deduction.
Fortnum Financial Advisers acknowledge policies do vary, but some Australians could receive a monthly benefit of up to 75%, or more in some cases, of their income in the event they are unable to work due to illness or injury.
According to the Principal of Integrity Resolutions Pty Ltd Col Fullagar, statistics about the likelihood of losing one’s livelihood are not necessarily the trigger to convince consumers of the risks they face by not having income protection.
“There are plenty of facts and figures out there but really people need to ask themselves one simple question – if I couldn’t work and earn a living, would it cause financial distress for myself and my family now or in the future? If the answer is yes, then securing income protection should be a matter of priority and there should be a sense of urgency about doing it.”
To find out more about income protection insurance and if you may be eligible to claim your premium as a tax deduction, contact Grabowski Financial Planning.