If you’re self employed or run your business through a company or trust do you have Income Protection insurance?
What are the benefits ?
By using this strategy you could:
Receive up to 75% of your pre-tax income if you are unable to work due to illness or injury, and
Ensure that business resources do not have to be used to fund you while you are unable to contribute to the business due to illness or injury.
How does the strategy work ?
If you are unable to work for an extended period due to illness or injury, how will you meet your mortgage repayments and other bills and expenses? Without an income, you could run down your savings very quickly and face financial difficulty.
Rather than putting your family’s lifestyle at risk, by taking out Income Protection insurance, you could receive a monthly benefit of up to 75% of your income to replace your lost earnings while you recover.
During this period, Income Protection insurance could ensure that business resources do not have to be used to fund your income while you are not contributing to the business.
What is your future earning capacity?
If you’re in any doubt about the importance of protecting your income, the table below shows how much you could earn by the time you reach age 65.
For example, If you are currently 35 and earn $80,000 pa, you could earn around $3.8 million before you turn 65. Isn’t that worth protecting in the event that you are unable to work due to illness or injury?
How Much will you earn by Age 65 ?
|Current Income (pa)||Age Now|
Assumptions: Income increases by 3% pa. No employment breaks. Figures rounded to nearest $10,000.
“MLC Protecting business owners Smart strategies guide”
If you need more information or help to implement this strategy for your wealth protection,
contact us today.
Head Office – Suite 6, 53-57 Glen Osmond Rd, EASTWOOD SA 5063 AUSTRALIA
Ph – 08 7111 0022
Email – email@example.com
— Living Today, Creating Your Tomorrow —