If you were to ask most people what their biggest asset is, the chances are they’ll say it’s their home. In some cases, this might be true, but for the vast majority of us our greatest asset is our income.
If you stop for a minute and think of the many different types of insurance you may currently have, car insurance, house insurance, health insurance and maybe even pet insurance. Think of what pays for all of these? Your salary. But how many of us are insuring our salary?
If you do not have any form of Income Protection, you will be relying on your employer or the state to continue paying you if you are unable to work. Lots of employers do not provide any form of sick pay and for those who do, the majority will only pay you for six months. After this period, you will then by relying on State Benefits (providing you are entitled to them ).
Taking into consideration, the State Illness Benefit and the State Disability Benefit is currently a maximum of €244 per week. Could you live on €244 per week (presuming you are entitled to it )? Would you be in a financial position to cover your current bills and living expenses?
That’s where income protection comes in. It gives you an alternative income while you’re unable to work due to an accident, injury or illness.
If you would like to find out more about protecting your income please contact Noreen McKenzie, QFA, RPA, BA at Wealthwise Financial Planning on [email protected]
