Do You Need Income Protection Insurance?

If you couldn’t work due to a serious illness, how would you manage?  Could you survive on savings, or on your sick pay from work?  If not, you’ll need some other way to keep paying the bills – and you should consider income protection insurance.

Income protection insurance pays a monthly income during a period when you are unable to earn an income, relieving you of your monthly financial obligations, knowing you have a steady income to support you while you concentrate on recovery.

If you are working and you are the main breadwinner for your family, having some protection or insurance for the money that you bring in is a good idea.  Think of what the impact on both you and your family will be if you were to lose your earnings for one month, one year, five years, or possibly for the rest of your working life.  If you don’t have much in savings, you could end up with a serious financial problem very quickly.

Your own illness or disability would be a personal tragedy, but financially disabling your partner and children at the same time would be much, much worse.

Here are some NZ statistics to consider: [Read more...]