Believe it or not, the ability to earn an income is the greatest asset we have; yet still for many the option of insuring that income is put off in favour of other financial commitments that we deem more important.
The true reality of our financial well being though, is without on going income the rest of our lifestyle would just about cease to exist.
So, why is it we always choose to insure our car, our contents such as our big flat screen TV, laptops and jewellery, our boat and even our holidays but we still resist insuring the income that provides for these things?
We think the answer is to have good quality income protection insurance, whether this is an actual income protection cover or mortgage repayment insurance.
In simple terms...
Income Protection provides replacement income to you, after a set waiting period, in the event of temporarily being unable to work due to illness or injury. This is a monthly benefit paid to you until you are well enough to return to work of for a set amount of time while unable to work.
Mortgage Replacement Insurance is payable if you were deemed temporarily unable to work due to illness or injury, but instead of receiving a monthly cash payment, the benefit is decided by the mortgage payment and usually paid direct to the Bank or lender. A good quality mortgage repayment insurance will continue once the mortgage is paid off in full as well, converting to an income protection cover at that point.
Sometimes when we are not sure about something, we tend to assume - below are just a few of the misconceptions about income cover:
- Income Protection is expensive
- It won't pay out when I need it
- ACC will cover me
- I can go on a Sickness Benefit
- I won't ever need to use it
- I won't be sick for that long
One thing we can assure you of is that the market has moved substantially over the last decade to now allow us all access to smart, well structured insurance that does not have to cost an arm and a leg!
Knowledge is no weight to carry and costs you nothing to get - if you want to have the assurance that your financial well being is protected, and that of your family and your lifestyle will always be protected no matter what - call us to discuss protecting your greatest asset!
Insurance People - freephone 0508 PEOPLE (0508 736 7853)
This information blog was written by Sarah Williams, Adviser, Insurance People.
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