While we are all quick to insure our cars and homes, we often neglect the most important thing of all that need to be insured: ourselves! Imagine that you were to suffer a heart attack which required you to take a prolonged period off work. How would you manage to maintain your lifestyle and meet your regular outgoings while you recover?
You might be thinking ‘I’m young, I’m healthy, I work out, I’m not going to have a heart attack’ and that may well be the case but none of us are impervious to illness and injury. You may be the safest driver in the world but that doesn’t mean that you won’t be involved in a serious accident which could leave you with long term health issues. In 2016 the South China Morning Post reported that road accidents kill an astounding 700 people a day in China so imagine how many more sustain serious injuries.
The fact is that however healthy and careful we are, we are all vulnerable to accidents, injuries and illnesses which could affect our ability to work and we need a back up plan to deal with that eventuality. Savings are a possible solution but the cost of medical care and a few months off work could very quickly devastate those and who wants to have to dip into their hard-earned pension fund and jeopardise their financial security in retirement?
A better alternative is to take out income protection insurance. These policies are designed to replace lost income in the event of a long term illness, injury or accident. Not to be confused with critical illness cover, which pays out a lump sum, income protection insurance pays the insured a percentage of their gross salary or take-home pay, usually tax-free, each month that they are unable to work. The percentage will vary depending on the premium you want, or can afford to pay and may be as much as 75%.
Expatriates living abroad are often not eligible for any state benefits either in their country of residence or their home country which means that, in the event of an unforeseen disaster, income protection payouts could literally be a lifeline enabling you to cover your ongoing living expenses including payment of your mortgage, school fees and monthly bills.
Never forget that your capacity to earn a living is your most precious asset. A serious illness or injury would affect your ability to earn and without income protection cover you are leaving yourself and your family extremely vulnerable to the potential negative impact of loss of income on your finances and lifestyle.
If you don’t currently have income protection insurance and you’d like the peace of mind of knowing that whatever life throws your way, your finances won’t go into a spins, please get in touch with me for further information and to discuss your requirements.