7 Reasons why people working in IT need good quality income protection
For most people working in IT, the ability to earn an above average income is their most financially valuable asset. The total value of income you would make between now and retirement is probably millions of dollars! Any asset worth that much needs to be properly protected.
Most employers don’t provide income protection. Even when they do, it is generally only a 2 year benefit. Individuals need to supplement their employer benefit (if any) with income protection that provides benefits right through to age 65 or 70.
Income protection premiums may provide you with a generous tax deduction. If you get your policy in place before the end of June, you might be able to claim a full year’s tax deduction in July!
Income protection is not automatically included in most superannuation funds. On the rare occasions it is, the benefits are usually less than you get with good quality income protection outside super. While Total and Permanent Disability (TPD) insurance usually is included in most super funds, it is very difficult to claim on. TPD is not the same as income protection.
Protecting your income is far more important than insuring your car, and the net cost after your tax deduction is often less than car insurance. Just as car insurers provide better rates to some suburbs and vehicle types, income protection insurers often provide better rates to people in IT!
Income protection is much easier to get while you are younger, healthier, and employed. It can usually then be locked in until retirement. If you put it off, you may not be able to get income protection later.
Not all income protection is the same. Good quality income protection is rarely advertised and usually only accessable via brokers. Products advertised via TV or direct marketing tend to have lots of built in exclusions that reduce your ability to claim. Income protection is far too important to cut corners.
At ICT Wealth we specialise in helping people in IT to get good quality income protection. If you would like to discuss your specific situation, just complete the “Request Callback” form.
Information contained in this site is of a general nature only. It does not constitute financial advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain financial advice specific to your objectives, financial situation and particular needs before making any decision or acting on any of the information contained in this site.
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