Have you insured your largest asset?
Or perhaps a better question to start with is: what is your largest asset?
For many of you reading this, the first thought you may have about your largest asset may be that it’s your house, an investment fund, a business, or perhaps a share portfolio.
However, for nearly anyone reading this still in paid employment, (or in other words, if you haven’t retired yet) your largest asset is usually your ability to earn income. That’s because your financial security – and that of your family – is dependent on one single factor: your income. Take away your income and your ability to pay for all the things you need, and some of the extras that make life more enjoyable, is gone.
Despite this fact, recent research commissioned by the Financial Services Council showed only 20% of New Zealanders have considered the risk of lost income due to illness or serious injury. Australian statistics (which probably also apply here) from a 2017 report by the insight’s organisation, Rice Warner, identified that only a third of the working population had income protection insurance.
What about ACC?
In the event of an accident, you'll usually be covered by ACC. However, ACC only covers injuries from accidents, whereas income protection cover ensures you are protected in the event of illness and injury – such as an injury from ‘wear and tear’.
Payments by ACC are also capped, which means if you earn a good wage it’s worth exploring whether you need additional cover.
“The government will look after me if I can’t work”
Think again. Government support in this area is very limited. For example, the maximum standard disability allowance is a paltry $64.29 per week!
What are the chances?
No one enjoys thinking about the bad things that might occur in life, and that can prevent some people making provision for such eventualities. However, let’s briefly consider some facts:
- A quarter of the 9,000 people who have strokes every year in New Zealand will be under retirement age;
- Approximately three out of 10 cancer deaths occur under the age of 65, and
- A quarter of strokes occur in people under age 65.
Of course, these are only a few statistics from a vast list of risks.
The bottom line is that anyone who is working and earning an income needs income protection insurance. It doesn’t matter if you’re a young single person, a middle-aged person with a family, self-employed or an employee – income protection insurance is essential to safeguard your largest and most valuable asset.
It would be our pleasure to assist you with either:
- A review of your existing income protection policy, or
- For a free and no obligation quote for an income insurance policy to meet your needs.
To learn more, contact us.