16/11/2022
Interest rates increasing, might be time to protect what pays the mortgage.
With interest rates on the rise, more and more people are looking to cut back on areas of spending to ease pressure on the family household. One area you should be seeking to spend is income protection insurance as a way to protect their monthly mortgage payments. Here are three reasons why you should consider getting this type of insurance:
1. You never know when you might need it- This is the number one reason to get income protection insurance. No one knows when they might lose their ability to work due to injury or illness. No one is bulletproof. If something happens and you can't work for an extended period of time, income protection insurance will help ensure that you still have a place to live.
2. Your health is unpredictable. Illness or injury can leave you unable to work for an extended period of time, which could lead to financial disaster if you don't have income protection insurance.
3. The cost of living keeps going up. As interest rates continue to rise, putting pressure on the household budget, instead of cancelling insurances, this is where it is even more important to protect the one thing that is providing you your lifestyle and home. Income protection claim payouts will increase with CPI to continue to meet cost of living even while you are on claim.
Over a typical working life, the average person will earn $3.3m. I think this is worth protecting. But let's hope income protection premiums are the best waste of money you ever spend.