Would you take a journey on a ship knowing it had no lifeboats?
What if the boat runs into trouble and begins to sink?
What's this got to do with insurance, I hear you ask?
Just as lifeboats are kept on a ship for use in emergency, to rescue people in distress at sea, income protection insurance is a financial life raft that can be used during times of emergency to provide a replacement income if you are unable to work due to illness or injury.
In previous blog posts we have endeavoured to highlight the importance of income protection plans as the figures speak volumes about the uptake of this unique type of financial security product:
Income Protection is often undervalued by some due to the fact that it is a living policy and in this way it differs from the more traditional life cover and critical illness. There's something very final about making claims on life cover and critical illness. An event happens, the payment is made and that's it, the plan ends.
There is a belief or perception held by many that income protection is the same type of contract; in that you make a claim because something final or very major has happened, you can't work and that you'll never work again. This is perhaps where people have a problem - accepting that they will be too ill to ever work again. They have visions of sitting in a wheelchair and their career at and end. Thereby they don't accept the risk and therefore don't accept that the plan is effective.
The reality is that people are far more likely to be off work for a significant amount of time than die or become critically ill. Income Protection is designed to assist with income when you can't work due to prolonged illness and can live with you throughout your career - to be used again when you need it.
It will support you through lost income from work for 6 months, for a badly broken leg, for example, as well as through the longer term implications if you should unfortunately suffer a stroke.
It truly is your financial life boat in a sea of risks that affect your ability to work, earn and support your family and your lifestyle.
To find out more about how income protection can support you, give us a call today.
*Cover Magazine 2014