Often when someone is asked about their greatest asset, their first response is “well, I guess that’s my home.”
However, we all know if we think this through properly, it’s our ability to earn income that’s actually our greatest asset. This is something that the pandemic has highlighted. Even in normal times, illness and injury can stop us earning.
Imagine you are 35 years old and earn $85,000 per year. If you continue to work for another 30 years (and forget salary increases), then you’d earn at least $2.9m!
Run your own numbers, and you will be stunned. Insuring that ability to earn an income is paramount. If you need help with this or would like to know what the premium may look like, call us.
If you’re fortunate enough to have income protection cover already, you’re in a special position. Insurers around the world are now changing their offering on income protection because of COVID-19. Every indication is that soon it will be harder – if not impossible – to get the same quality of cover we enjoy now.
Mental health exclusions may be ‘baked in’. The length of time you can insure may shrink. Right now, you can insure up to the age of 65, but it could be cut to a maximum of five years.
If you currently have good income protection insurance, hang on to it tightly. In the future, you may not be able to access anything of similar quality. On the other hand, if you don’t have income protection call us sooner rather than later! Reach us at 09 307 9300 or email info@imak.co.nz.
