Why Protecting Your Income Is So Important
Your income supports almost every part of your everyday life. It helps pay your mortgage or rent, household bills, groceries, transport costs, your children’s needs and the lifestyle you have worked hard to build.
But what would happen if an illness or injury meant you could no longer work and earn your usual income?
For many New Zealand families, losing an income could quickly create financial pressure. While savings may help for a short time, they may not be enough to cover regular expenses during a longer recovery period.
Your Income Is One of Your Greatest Assets
People regularly insure valuable assets such as their home, vehicle and belongings. However, the income that pays for those assets is often left unprotected.
Over your working life, your ability to earn an income may be worth hundreds of thousands or even millions of dollars. Protecting that earning ability can be an important part of creating long-term financial security.
Income protection insurance is designed to provide regular payments if you are unable to work due to an eligible illness or injury. This can help you continue meeting your financial commitments while you focus on your health and recovery.
What Could Income Protection Help Cover?
Income protection payments may help with everyday costs such as:
- Mortgage or rent payments
- Groceries and household expenses
- Power, phone and internet bills
- Loan and credit card repayments
- Transport costs
- School fees and children’s expenses
- Medical and rehabilitation costs
The cover you need will depend on your income, financial commitments, existing savings and personal circumstances.
How Long Could You Manage Without Your Income?
It can be helpful to consider how long your household could continue covering its expenses if your income suddenly stopped.
Some people may have savings, annual leave or support from a partner. However, these resources can reduce quickly if you are unable to work for several months or longer.
Having suitable income protection or disability insurance in place can provide an additional financial safety net and reduce the pressure on you and your family during an already difficult time.
Choosing the Right Income Protection Cover
Income protection policies can differ in several ways, including:
- The percentage of your income that may be covered
- How long you must wait before payments begin
- How long payments may continue
- The illnesses and injuries covered
- Policy exclusions and eligibility requirements
It is important to understand these details before choosing a policy. The cheapest option may not always provide the level of protection you need.
Protect the Income Your Household Relies On
At Halo Advisers, we take the time to understand your income, expenses, responsibilities and long-term financial goals.
We can explain the available disability and income protection options in plain language and help you find cover suited to your circumstances.
Protecting your income means protecting your ability to continue paying for the things that matter most, even when life does not go according to plan.
Learn more about disability insurance or contact the Halo Advisers team to discuss your options.