Importance of Income Protection
A recent article in the Herald Sun titled “Don’t Risk Your Pay”. It’s a great article that focuses on what we all know is peoples biggest asset, the ability to earn an income. (Article web link below)
It’s great to see such an article in the paper especially when it highlights the need and also promotes that there has been 48,000 odd income protection claims last year worth $1.26 Billion paid up form $570 million in 2006.
There is also a comparison table which compares various occupations for a 30 year old with a 30 day and 2 year benefit period which in my view should have shown a more realistic benefit period to age 65 at the very least. There was also no mention that when looking at Income, not all polices are the same especially when it come to being Totally Disablement and not being able to work.
On that point, we all know that income protection policies can vary significantly in relation to the options and benefits they offer. This of course means that advisers need to take care to ensure that they recommend the product which best suits their clients circumstances and make sure they are meeting their client’s ‘best interest’ requirement.