At any stage in life, protecting your savings and the income you receive to fund these savings is critical to the achievement of any of your financial goals. When people think of insurance they often think of protecting their valuable assets, such as car insurance, home and contents insurance or health insurance. Additionally, when you are young with no mortgage or dependants, it is hard to imagine why products such as life insurance are appropriate for you.
But for most people, their income is their most valuable asset. It’s essential to protect your primary source for achieving your financial goals and building your wealth.
Income protection insurance can replace up to 75% of your pre-tax income if you’re unable to work due to sickness or injury. That means if you could not work for an extended period of time due to accident or illness, up to 75% of your salary would usually be paid for up to age 65 depending on the terms of your contract. An added benefit is that you receive tax deductions for the fees you pay for this protection.