There’s Never Been A Better Time To Review Your Income Protection Position

 

If you already have some form of income protection insurance in place, you probably also already know that this is one of the smartest and most important financial strategies that you can invest in.

Income protection strategies cover a range of insurance products that you can put in place to ensure that, in the event of an unforeseen or tragic event, you and your family have reliable and secure access to income which can offset the impacts of not being able to work, whether for a period of time, or in the long term.

The reality is that, even if you are young, fit and healthy, there is always a risk that an event could occur which prevents you from attending work and earning an income. And if you are self-employed or a small business owner, income protection insurance is even more important. Chances are that you have neither sick leave nor annual leave available as an option to help you through in the event of a serious illness or injury and you and your family are probably highly dependent on your business income to maintain your standard of living.

The Australian economy has endured an unprecedented downturn as a consequence of the social and economic restrictions necessarily imposed by the need to address the COVID-19 pandemic. And small businesses have, by in large, borne a disproportionate economic and commercial load as a consequence. The Commonwealth and State Governments have stepped up to the mark in providing widespread business and income support to assist in managing the impacts of business decline.

 

If you have income protection insurance in place as part of your financial strategy, now is probably the best time think about reviewing and updating your policies. Credit: Unsplash

 

However, as the economy starts to open up and support options such as JobKeeper and other stimulus measures are being wound down or removed, there is the potential for underlying business challenges to emerge which may have unpredictable consequences.

If you have income protection insurance in place as part of your financial strategy, now is probably the best time think about reviewing and updating your policies and cover to make sure that it is still a good fit with your current and forward business outlook. If you don’t have any cover in place, perhaps now is the time to seriously consider it as an option.

Of course, choosing the right income protection strategy is a critically important decision for you and your loved ones. You need to carefully consider the available options and you need to ensure that whatever policies you put in place are well suited to your individual circumstances and will do what they say they’ll do in the event that you ever have to use them.

That means if income protection insurance is an important part of the finances for you, your business and your family, it is essential that you take the time to talk to an independent, expert insurance provider that will understand your business, understand your personal requirements and help you put in place the most effective solution for you.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.

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