Robson Chartered Accountants Business & Finanical Advisors - Gosford - Central Coast - NSW

Protect your most valuable asset – your income

One in six women and one in four men between the ages of 35 and 65* can expect to be off work for 6 months or more due to an accident or disability, according to David Evers from local accounting and financial planning firm, Robson Partners

However despite these alarming statistics, few Australians consider the financial ramifications of being out of work for an ongoing period of time - until it happens to them.

“Surviving without an income for a few weeks may be manageable; however, if this continues for an extended period, paying a mortgage and hospital bills (let alone day-to-day expenses) becomes increasingly difficult.  In these cases, having a Wealth Protection plan in place can be a life saver, especially if you have a family to look after.”

According to David Evers basic Wealth Protection starts with Income Protection Insurance, which provides up to 75% of gross income in the event that you are unable to work due to accident or illness.  The cover can last up to the age of 65.

David Evers says that although people spend thousands of dollars per year insuring their homes and cars, they fail to insure the one asset that pays for all these things – their income. “Income Protection Insurances costs around 1-2% of your gross income, so it is really a small price to pay for financial security.  Additionally, it is tax deductible and can be claimed in the current financial year if paid in advance.”

David Evers believes Income Protection cover to be an essential aspect of financial planning.  “When planning your finances, you should ask yourself whether you would be able to enjoy the same lifestyle without your income.  Would your children be able to continue at the same schools? Would you be able to keep your home? If the answers are no, then it would be very prudent to consider some kind of Wealth Protection cover,” says David Evers.

“Having an accident or illness is stressful enough, without having to worry about finances. Income Protection gives you peace of mind so you can concentrate on recuperating and looking after your family.  By making a small sacrifice now, you achieve instant financial protection for yourself and your family,” says David Evers. 

David Evers is an Authorised Representative of Count Financial Limited, an Australian Financial Services Licence Holder (No. 227232) and Australia's largest independently owned network of financial planning accountants and advisers.

The advice provided is general advice only as, in preparing it, we did not take into account your investment objectives, financial situation or particular needs.  Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, objectives and financial circumstances.

* Institute of Actuaries, 2000

For further information: David Evers