When making a property investment, your top priority is likely to be how to afford the mortgage repayments. Whilst you will almost certainly have purchased home insurance to protect your investment, there are other possibilities you also need to consider to ensure you are protected in every eventuality.
For every one home lost through fire, there are four lost though death and forty-eight foreclosed and lost through disability.
Essentially Income Protection Insurance will secure you and your family a steady income and relieve financial strain should you unexpectedly be unable to work through illness, injury or death. Most policies provide the holder with 75 per cent of the average salary in this eventuality. Without this, it would be extremely difficult to provide for your family and continue with mortgage, household and medical bill payments.
The extra expense may seem a lot when purse strings are already tight in the aftermath of a new investment; however, tax deductible Income Protection Insurance could be the answer.
It is likely that you have insurance through your superannuation that offers cheap cover. However, be wary – insurance proceeds through super will be taxed, often leaving insufficient funds to cover payments that you, or those left behind in the event of a death, must make.
Whilst you are paying the premium, the cheaper option through super might be tempting. However, should the eventuality of you unexpectedly being unable to work occur, the outcome could be financially devastating if you do not have a cover with minimal tax implications.
Related posts:
- Income Protection Insurance An Income Protection Insurance is used to replace the income that is lost through the inability to work because of...
- Income Protection Insurance Tips Income Protection Insurance is used to replace the income that is lost through the inability to work because of an...
- Income Protection Insurance Income protection insurance is very important in that it provides you with a security blanket in case you can no...
- Income protection, what to look out for Before taking an income protection insurance policy, you must shop around and check the policies that reliable insurance companies offer....
