Why don’t we have Income Protection….It doesn’t make any sense
The majority of Australians have no trouble insuring their home and contents from fire, theft and weather damage. It makes a lot of sense to take out insurance on your home. It’s your biggest asset, right?…………Wrong!
The average Australian earns well over 2 million dollars in their lifetime, much more that the value of the average home. And yet the majority of income earners don’t insure their largest asset – their income earning capacity.
Even more surprisingly, the Investment and Financial Services Association (IFSA) has found that nearly 70% of the self employed have no disability income protection insurance – even though it is tax deductible! When income protection insurance that protects your largest asset can cost less that your daily cup of coffee, you have to wonder…
Why don’t people take better care of their largest asset?
In its July 2005 survey, IFSA found some myths about income protection insurance:
Myth #1 “I cannot afford it” 63%
Myth #2 “It won’t happen to me” 51%
Myth #3 “It’s a waste of money” 46%
Did you know…
- Australia’s small business and self employed sector is underinsured to the tune of $265 billion (12)
- The average Australian family has around $14,500 in non-mortgage debt and spends almost $310 a week raising their children (12)
- Disability and Income Protection Insurance can cost under $20 a week, before tax! (13)