Suppose you already have some form of income protection insurance in place. In that case, you probably also already know that this is one of the smartest and most important financial strategies that you can invest in.
Income protection strategies cover a range of insurance products that you can put in place to ensure that, in the event of an unforeseen or tragic event, you and your family have reliable and secure access to income which can offset the impacts of not being able to work, whether for a period of time or in the long term.
The reality is that, even if you are young, fit and healthy, there is always a risk that an event could occur which prevents you from attending work and earning an income. And if you are self-employed or a small business owner, income protection insurance is even more important. The chances are that you have neither sick leave nor annual leave available as an option to help you through in the event of a severe illness or injury and you and your family are probably highly dependent on your business income to maintain your standard of living.
The Australian economy has endured an unprecedented downturn as a consequence of the social and economic restrictions necessarily imposed by the need to address the COVID-19 pandemic. And small businesses have, by in large, borne a disproportionate economic and commercial load as a consequence. The Commonwealth and State Governments have stepped up to the mark in providing widespread business and income support to assist in managing the impacts of business decline.
However, as the economy starts to open up and support options such as JobKeeper and other stimulus measures are being wound down or removed, there is the potential for underlying business challenges to emerge which may have unpredictable consequences.
If you have income protection insurance in place as part of your financial strategy, now is probably the best time think about reviewing and updating your policies and cover to make sure that it is still a good fit with your current and forward business outlook. If you don’t have any cover in place, perhaps now is the time to consider it as an option seriously.
Of course, choosing the right income protection strategy is a critically important decision for you and your loved ones. You need to consider the available options carefully, and you need to ensure that whatever policies you put in place are well suited to your individual circumstances and will do what they say they’ll do if you ever have to use them.
That means if income protection insurance is an important part of the finances for you, your business, and your family, it is essential that you take the time to talk to an independent, expert insurance provider that will understand your business, understand your personal requirements and help you put in place the most effective solution for you.