Income Protection Insurance for High Income Earners

Some people think that since they earn significantly more than the average Australian that they no longer need to get life insurance. However, this isn't always the case. The truth of the matter is that it still helps to be insured no matter within which income bracket one belongs.

In this article, we will share with you some of the reasons why it still makes sense to get income protection insurance if you are a high-income earner. Here they are:

  1. It takes time to convert some assets to cash. Let's say that you have property investments that you could liquidate when the need arises. Sure, the value of the properties may exceed your needs should you get sick, disabled, or die, however, it could take a significant amount of time before you could turn them into cash. You still have to look for buyers, you need to advertise and market it, and you still have to go through the processes of transferring the property to the new owner. Emergencies don't wait, so it still helps to have easily accessible funds anytime. Income protection insurance may have waiting periods, but they are often shorter than the entire process of selling a property.
  2. Assets are bound by market conditions. Let's say that you were able to easily find a buyer for your property. The only problem is that he isn't willing to pay your asking price because of the today's poor economy. You could then be forced to sell it at a lower price just to cover for your needs during an emergency. With income protection insurance, however, what you get is up to 75% of your salary, regardless of the market conditions.
  3. You could pay more. During an emergency, the last thing you need is an extra expense by using money which you could have used for your hospitalisation, recovery, or the financial needs of your family. But when you're selling off an asset, you might have to pay taxes and other fees, which reduces the money you could have had in your pocket. It is thus worth keeping in mind when selling assets.

All in all, it still helps to have income protection insurance even if you have considerable assets. Being insured leaves you one less thing to worry about in your time of need.

ere at Rate Detective, our consultants are ready to help you choose the right income protection insurance for your needs. So don't wait until it's too late. Contact us today!

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Published on January 1-th, 2013 in Income Protection Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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