Income Protection: Why you need to consider this essential piece of your financial security puzzle

Many of us in our 20s and 30s don’t think that anything serious will happen to us at this point in our lives. While this may be true for many, if something were to happen to you, would you be properly protected? Statistics show that for 30 year-old non-smoking women and men, there is about a 50% chance that a serious accident, illness or death will occur before age 65.

Having the proper income protection plan in place while you are young and healthy will give you peace of mind knowing that your family will be taken care of in the future and your debts can be paid. The family home will not need to be sold, your children’s post-secondary education can be paid for, and your family can maintain their lifestyle today and in the future. Don’t forget that you aren’t just protecting your income level now; you are also protecting your future earnings. Someone making $30,000 salary at age 30 could make over $1,000,000 throughout their working career. Why wouldn’t you want to protect your earning potential and ensure your family is taken care of in the event something happens to you?

There are a variety of different life insurance products in the market today. Certain plans can have a cash accumulation attached to them, meaning that in the future, the plan can pay for itself; alternatively, you can withdraw that cash to help pay for much needed expenses. Other plans have the ability to increase the total protection available that factors in inflation. You can also purchase additional insurance in the future to protect your children until the age of majority. Purchasing protection when you are young and healthy can increase your chances of receiving better protection at lower rates, potentially saving you thousands of dollars over the lifetime of your policy compared to waiting five or ten years to purchase the same policy.

Life insurance is not a one size fits all kind of product. It can be customized to meet your needs today and in the future. Policies can be adapted to suit your needs as they change, and protect your income and family into the future. The tendency is to put income protection and life insurance off until the future, either because people can’t find the time or it is not a top priority. The truth of the matter is, income protection doesn’t matter until something unexpected happens, and then it matters a lot!