Protect Your Main Asset – You Ability to Earn
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Everyone knows the importance of protection and being protected financially. Most people have some sort of insurance whether it’s life insurance or disability insurance. One great option that is starting to get more popular is income protection insurance. The beauty of income protection is that it provides you with 75% of your income and unlike a traditional disability protection there is no list of events for which you would be paid out in the event of a claim. This means that virtually anything that prevents you from working can be claimed, which will ensure financial stability for you and your family. When life throws challenges in your face the most well prepared people are usually the ones who come out unscathed.
I’ve worked with a number of dentists in my day and they can provide a great example of why income protection is a smart decision. One of my friends, Eugene, owns his own high volume oral surgery practice in addition to performing contract services several times a week in other offices. A wayward shot on the golf course left him with 2 broken knuckles and a broken bone in his hand rendering him incapable of performing surgery for 3 months. Luckily, because of his network he was able to get some colleagues in to his main practice and perform surgery, which kept the practice solvent. The contract work would have been a different story but fortunately for him and the 2 daughters he was putting through college, he had income protection insurance, which covered 75% of that income.
I like this example because people often say; “I don’t work in manual labor so income protection is an unnecessary expense.” But, you would be hard-pressed to think of an occupation that doesn’t use their hands in some capacity. What happens to the long haul trucker that breaks his foot or tears his ACL? The lifeguard who suddenly finds herself battling a serious illness? In all of these cases worrying about finances is an added stress that, if anything, makes it more difficult to rest, heal up and get back to work. The peace of mind that knowing you have 75% of your income coming in during this time means you and your loved ones have one less thing to worry about.
Now each situation is a little different and there are several variables that go in to what your monthly premiums will be for this type of protection. A policy that covers you for 2 years of not being able to work with no waiting period after a claim is filed for a smoker in a manual labor field will cost more than one with 6 months of coverage and a 1 month waiting period for an office worker with no risk factors. There are several experts out there, bottom line, go find one who can help you decide which options are best for you.