We asked an expert in this field – Financial Planner – Justin Chandler from Chandler Private Wealth

We get asked this question a lot and the short answer is if you rely on your income (employed or business owner) to put food on the table, pay your home loan repayments and pay your bills… then YES.

If you have got to a point in your life where you are financially free and have passive investments generating enough income to support your lifestyle and into retirement, then… probably not.

There is nothing better than having the peace of mind knowing that you and your family are financially covered should an income earner suffer an accident or illness. The sad truth is that everyone knows someone with cancer these days and you don’t want to be one of the people that also loses their home due to an income earner losing their income. Your income is generally your biggest asset and should be insured just as you would your home and car.

Income protection can pay up to 75% of your pre-disability income so you can concentrate on getting better. Business expenses cover is separate to this so contact us if you need further details. Having to worry about finances can be stressful at the best of times, so think about what it would be like if you also had a serious illness and not able to work.

Any income protection worth having you need to qualify for. You must answer some health, lifestyle and financial questions. Then once you have answered these questions an underwriter decides if they will offer cover or not. A little different to those ads on TV with their crazy promises that they can’t always keep at claim time.

Premiums will depend on your age, occupation, smoker status, health and can sometimes be paid via your superannuation if cash flow is an issue. Otherwise, if you pay personally the premiums are generally tax deductible.

Income protection, like other insurances, need to be tailored to your personal situation and require the help of a professional adviser.

Other types of insurance which you may require but are not covered here are;

Life insurance, total and permanent disability insurance, critical illness (trauma) cover, business expenses cover, key person cover and buy/sell protection.

If you would like to chat about any of the above, please don’t hesitate to contact us.

Justin Chandler – Chandler Private Wealth