Life is unpredictable – we never know what’s around the corner.
Question: What do you think is your largest asset?
Is it your home? Or is it your business?
It’s neither!!
Income is your largest asset!!
So, where would you be if you were unable to work due to accident, sickness or disability! Some facts:
- 1 in 8 chance of suffering a specified illness
- 1 in 6 chance of being off work for six months or longer
- 1 in 20 chance of dying
So if this were to happen who will pay these bills?
For most of us we believe that our employers will pay us while we are out on sick leave! In fact 30% of employees actually believe their employer will provide sick pay indefinitely. The stark reality is that only 15% of Irish workforce is entitled to sick pay of longer than 6mths. That all being said there are 25% of us who believe that the State benefit would be sufficient to survive on whilst out on long term sick. Well let’s examine this fact:
Weekly Benefits from January 2011 for Invalidity Pension are:
- Personal Rate €193.50 per week or €10,062 per annum
- Person + Adult dependent under 66 €331.60 per week or €17,243 per annum
These rates could change in the upcoming budget but are correct at time of writing this blog.
That’s all well and good if you are an employee at least you will get some assistance from the State although fairly meagre. What if you are self-employed? Unfortunately the Self-employed have no entitlement to state benefits!
So with all these rather dark facts how long would your savings last if you had to draw on them every month for day to day living? Or more alarmingly how could you continue to pay for your outgoings without an income? The last thing you or your dependents need on top of dealing with a health crisis is a cash crisis.
What’s the solution then?
Income Protection - Less than 10% of us have Income Protection
“Income Protection is the most important financial product anyone can have”
Check out our Income Protection page for more info or call Alasdair on 01 810 1912 or email info@agsfinancial.ie