Can you protect your income?
One of your greatest assets is your ability to earn an income. If you suddenly lost your source of income you would likely have to make drastic changes to your lifestyle. Most of us cannot survive without our monthly income.
That’s where Income Protection comes into play. Income Protection is designed to pay you a monthly income should you become ill or disabled. This protection ensures that you and your family can remain financially secure.
How it works
We assess and evaluate the risks associated with your lifestyle and the impact of losing your income.
Some of the aspects we consider:
- Current Health
- Income needs
- Dependent needs
- Future needs
- Occupation and salary and risk factors
These risk factors influence will have an impact on the cover you can get and the premium you will pay. For a more detailed account of these risk factors have a look at our “Factors affecting your Premium” blog.
Some Key Terms and Benefits to Consider
This is a huge difference when considering the impact of inflation on your monthly expenses. If you are not sure if your policy has this benefit added you need to check or ask us to check.
- Are you self-employed?
- Do you have other provisions in the event of a disability?
- How long do they cover you for?
- Do you have an emergency fund?
- How many times monthly salary is in your emergency fund?
This refers to how long you will receive an income, should you claim.
Should you have temporary income protection, the amount paid out will be paid out for a maximum of 24 months whereas permanent income protection will pay out till the benefit expires. Usually, this is the retirement age of 65 but it is becoming more popular to select age 70.
Things to Note:
- Benefit periods – the common periods are up to age 65, 70 and life.
- Income protection insurance doesn’t cover you for lost income because you are retrenched or become unemployed.
These are just some of the things to consider.
- Also consider what and how much cover you have through work
Our number one job as a financial planner is to listen to you, understand your goals and provide the best objective advice. The correct plan will provide peace of mind. Here at Growmatter, we want the best for our clients and we are committed to working together.
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The information provided is not intended to address the specific circumstances of an individual and is for information purposes. Should you require financial advice please contact us at email@example.com