It’s simple…your greatest financial asset is your income. Yet when it comes to insurance and protecting your greatest asset, far too many simple simply ignore it.
So just how to you protect your greatest asset…? The answer is…with the right income protection policy. This will protect a percentage of your income (typically up to 75%) in the event that you’re unable to perform your job due to disability.
Let’s first take a look at why it’s so vitally important that you protect your income. Here are the income generating capacities of people at various income levels at different stages of their life, highlighting just how much they’re expecting to earn up to retirement. We’ll assume that your income climbs by an inflation rate of 3% per year.
That’s right, if you’re currently 35, earning an annual salary of $200,000, you’re expected to earn approximately $9 million by the time you retire at 65.
Let’s take a look at some of the more alarming statistics:
- 45% of those with income protection are under-insured by $1,000 per month or more
- 89% of Australians surveyed (OnePath Life) stated that they didn’t expect to have an accident that would make them unable to work within the next 20 years
- More than 50,000 are hospitalised for 5 days or more each year just from traffic accidents alone – the majority of which are working age.
- 1/3 of women will suffer from cancer
- 1/4 of men will suffer from cancer
- Over half of those diagnosed will survive for more than 5 years
Our priorities are all wrong:
- 83% of Australians will insure their car
- Yet ONLY 31% insure their ability with some degree of income protection cover
And the most important statistic of all when it comes to income protection cover:
- Every working Australian has a 1 in 3 chance of becoming disabled through illness or injury for more than 3 months before turning age 65
Ensure that you’re protecting your most important financial asset and that your family will be looked after in the event that you can no longer work.
To your financial success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.