Incomeprotection
New Member
After being seriously injured in a car crash at age 42, I had to rely on Income Protection payments for a significant period of time to help me and my family survive financially, and I suspect many on this forum have as well?
With 68% of all Australian income earners without Income Protection, does anyone see a problem?
Scenario: 42 year male has a massive stroke and it's so significant the specialists tell him he'll never work again....he's married with four children, two still at private secondary school and one at university. Substantial home loan, investment property, leased cars etc. No Income Protection.
What happens next?
1. Wife gives up work to become a full-time carer because of his illness and the expected length of rehabilitation.
2. No income coming into the home
3. Bank account is now bleeding
4. Investments being realised to help fund day to day life, including home loan repayments.
5. Insurance premiums are the next to go, and of course no money is being paid towards Superannuation.
6. Children taken out of the schools of their choice
7. Falling so far behind in house payments....they will be sold up!
An MLC study stat showed that for every house lost to fire, 3 are lost to death, and 48 are lost to accident, illness or injury.
There are approximately 800,000 Australians receiving the Disability Support Pension (DSP) at Centrelink, and one wonders how many are receiving it because they didn't have IP in place?
The average wage in Australia is $74,724pa, and the Disability Support Pension is $22,191pa.
In my humble opinion there should be a massive campaign launched by the whole industry to bring awareness to the 68% of Australian income earners who are blissfully unaware that they will lose everything if something goes terribly wrong in their lives! And IT WILL for many of that number...... And it may even be your client….What is your “Duty of Care”?
I worry for those families and I really worry for their children, (we could have been in this situation), so we must become better at providing advice because when the income stops....everything stops with it, & there is no future, not on $22,191pa!
Your most important asset is your ability to earn an income!
John Maher
With 68% of all Australian income earners without Income Protection, does anyone see a problem?
Scenario: 42 year male has a massive stroke and it's so significant the specialists tell him he'll never work again....he's married with four children, two still at private secondary school and one at university. Substantial home loan, investment property, leased cars etc. No Income Protection.
What happens next?
1. Wife gives up work to become a full-time carer because of his illness and the expected length of rehabilitation.
2. No income coming into the home
3. Bank account is now bleeding
4. Investments being realised to help fund day to day life, including home loan repayments.
5. Insurance premiums are the next to go, and of course no money is being paid towards Superannuation.
6. Children taken out of the schools of their choice
7. Falling so far behind in house payments....they will be sold up!
An MLC study stat showed that for every house lost to fire, 3 are lost to death, and 48 are lost to accident, illness or injury.
There are approximately 800,000 Australians receiving the Disability Support Pension (DSP) at Centrelink, and one wonders how many are receiving it because they didn't have IP in place?
The average wage in Australia is $74,724pa, and the Disability Support Pension is $22,191pa.
In my humble opinion there should be a massive campaign launched by the whole industry to bring awareness to the 68% of Australian income earners who are blissfully unaware that they will lose everything if something goes terribly wrong in their lives! And IT WILL for many of that number...... And it may even be your client….What is your “Duty of Care”?
I worry for those families and I really worry for their children, (we could have been in this situation), so we must become better at providing advice because when the income stops....everything stops with it, & there is no future, not on $22,191pa!
Your most important asset is your ability to earn an income!
John Maher
