It’s easy to assume that income protection insurance is something people need in thelater stages of their lives. However, there’smanyreasons why people of every age, in any workforce, find value in having Income Protection Insurance.
Over the years, we have seen an increase in the number of people in their 30s making income protection insurance claims; showcasing the importance of investing in income protection at a younger age. So what is income protection?
Income protection Insurance is a product that replaces the majority of your income if you’re unable to work due to illness or injury.The reality is that many of us are likely to suffer a health conditions at some point in our careers that could put us at risk of financial hardship.
For young people, Income protectioncan help you to maintain your quality of life, payyour rent/mortgage, credit cards& household bills, and help cover your regular cost of living while you recover from injury or illness.
Here are a few reasons why income protection is essential for anyone in any workforce, of any age:
Pay Ongoing Expenses
Have you ever thought about how you would pay your rent, electricity or loans, if you ever became unable to work due to illness or injury? When you are just starting off in your career,you might not have enough savings to pay ongoing expenses, if you are unable to work and the only option left might be to go back and live with family.
However, this will not be the case with income protection insurance, and it can pay you 75-85% of your salary every month. So, you can easily pay all your expenses and recover without any worry.
Buying A Property
While you are younger, you are likely to make large monetary decisions such as buying cars or houses. Purchasing a property is very challenging;there are many upfront costs plus your mortgage commitment is very long-term. So if buying property, it is vital toalso think about what you would do in the case of you being unable to work.
Income protection policies will provide you with the ability to look after your monthly mortgage by providing a replacement monthly income. Anyone willing to buy property should protect their property and the ability to paytheir mortgage against the risk of being unable to earn.
Getting Married& Starting a Family
Starting a family can be one of the main reasons that young people considerpurchasing an income protection insurance policy.
If one partner loses their income due to illness or injury, all the financial pressure will fall onto the other partner. In this economic climate it can be difficult for one person to look after all the expenses.If someone had to stop working long-term, having income protection cover would lessen the burdenfinancially for the partner who is still working.
And the worst case scenario; what if both of you were unable to work at the same time, perhaps from a single cause – an accident or you both contracted the same illness?
It doesn’t matter where you work or how old you are, accidents and illnesses happen every day. However, don’t let yourself be the person who didn’t protect themselves because you thought you were too young or you wouldn’t get injured/ill. Without appropriate income protection insurance, being unable to work due to injury or illness can have severe negative consequences on your finances, no matter who you are, or what you do.