How To Safeguard Your Salary With Income Protection Insurance

If you were asked what your biggest asset is, you may first think of your home, or your superannuation balance. However, If you multiply your yearly salary by your years to retirement, you may be surprised by the large figure. For someone aged 25, 40 years of earning $60,000 per year is a hefty $2.4million. Now that is definitely something worth protecting! If you rely on your income to meet day to day expenses or loan repayments you should seriously consider income protection insurance.

When you are healthy you probably think you don’t need insurance – but this is the best time to get it. Once you are sick you may not be able to get insurance at all, or may be forced to pay much higher premiums.

In a nut shell, Income protection insurance pays a monthly benefit, which can replace up to 75% of your income if you are unable to work due to injury or illness. It ensures that you continue to meet your regular living expenses when you cannot work beyond the waiting period you nominate. For most people this is 30 days. Income protection typically costs 2% of the average person’s income so ask yourself; Would I rather 100% of my income now and potentially 0% if I am injured or ill, or would I like 98% of my income now and get 75% later!

Policies vary across the board in Australia, so it’s best to seek professional advice to find the policy that is right for you. At Tiffen & Co we have you covered. Should you wish to know more please phone the office on 6260 7880 to book an appointment with Fiona Morrissey of Tiffen & Co Insurance Services who can meet with you free of charge to help you find the best solution for you.