Sometimes, when speaking to clients it is evident that not everyone completely understands what income protection is. Of course, we always recommend speaking to your financial adviser when trying to decide if a financial product is suitable for you or not. We will give a brief overview all about income protection here.
What income protection is:
- protection against being unable to work due to illness or injury. This means that it relates to your physical capacity to do your job.
- a replacement income.
- a benefit that lasts until retirement.
- it is a tax relievable expense. You can claim tax relief on your premiums at your marginal rate.
What income protection is not:
- a lump sum payment if you are diagnosed with a serious illness. If this is what you are looking for, you should seek information about Specified Illness Cover.
- restricted to a specific list of illnesses. Claims will be paid on your inability to work due to illness or injury, no matter the cause.
- an income for life. The benefit will only be paid until you are deemed fit to return to work, or you retire.
- protection against redundancy. The inability to work has to be due to illness or injury.
Why do you need Income Protection?
Your income is your biggest asset. It is the glue that holds your entire financial portfolio together. If you lose your income, everything is at risk – your mortgage, your insurance policies, your pension, your entire lifestyle.
To secure peace of mind over your financial future, discuss your income protection options with us.