Senior Financial Planner with SYS Group Marc de Courcy discusses the importance of Income Protection insurance and why you need it
It is a priority for Irish families to protect their income in the case of a loved one’s death. What people sometimes forget, is that protecting their income in the case of accident or illness is equally if not more important. What would happen if you were unable to work for an extended period? Do you have a financial plan in place?
Life Assurance is considered a death benefit and will protect a family financially in the case a loved one was to pass away. This is important as the benefit pay out will replace the lost income that would have been earned and will help the surviving spouse or partner continue in the same financial state.
Income protection is considered a living benefit. This is very important as the life assured will benefit while still alive and while they are unable to work due to accident or illness.
Insure Your Income – The Benefits
- Replacement of income of up to 75% including social welfare payment
- Ongoing cover until retirement age
- Benefit pays out until back to work.
- If you are unable to work again benefit cover until end of term
- Escalating benefit in payment option
- Guaranteed or renewable cover
Income Protection – Your Greatest Asset
Some consider it to be your family home, some consider it to be your life’s savings, some consider it to be your investment property.
I feel your income is your greatest asset and this needs protection, so you and your family do not have a financial crisis while one is in a medical crisis.
Some people prioritise pension, savings, or life insurance over other necessities. If you lose your income and do not cover in place, you will not be able to continue the luxury of the above.
Put careful time and thought into planning income protection, as this decision can be the difference in maintaining your existing lifestyle or accepting a very different way of life.
If this article has piqued your interest, please contact your designated Financial Planner.