Why You Should Protect Your Income Today, Not Later
Lesson 12 Module 4
What can stop your income for the next 6 months?
The most common reason for disruption of income is Job Loss, or Slowdown in Business, isn’t it?
Sometimes it may take up to 6 months to find another job, or get your business revenue back to normal.
Will your expenses wait for that to happen?
"Always maintain an emergency fund equal to six months of your average monthly income." Amit Mitbawkar - https://amitmitbawkar.com
What else can stop you from earning?
Apart from the Job loss, the 3 main factors for disruption of income are:
- Critical illnesses like heart attack, cancer, etc…
- Permanent Disability
Loss of Income Due To Critical Illness
Yuvraj Singh, the famous Indian cricketer lost USD 3.5 million (his annual earnings) when he didn’t play cricket for one year, because of Cancer.
How much money will you lose, if you are not able to work for 1-5 years because of Critical Illness? Will your expenses stop during this time?
Protect at least 5 years of your current income against loss of income due to Critical Illness.
Loss of Income Due To Permanent Disability
Michael Schumacher the F1 Racing Champion, went into a coma for 4 years, after hitting his head on a rock, while skiing in the French Alps.
Worth $800 million, his family is said to shell out £115,000 a week for round-the-clock care.
How will you and your family fair financially, if you are permanently disabled today?
Protect at least 10 years of your current income against loss of income due to Permanent Disability.
Loss of Income Due To Death
Steve Jobs died of Pancreatic Cancer in 2011. He was worth USD 10.5 Billion, when he died.
How much are you worth, and how will your family fair financially, if you die today?
Protect at least 10 years of your current income against loss of income due to Death.
3 Reasons You Should Act Today
- Income protection premiums increase with age - If you are considering protecting your income, make sure you do it before your next birthday.
- Premiums increase depending on your health - If you are healthy today, you get standard premiums. If you have high blood pressure, cholesterol, or other health issues, premiums could increase. Protect your income while you are healthy.
- Accidents happen without notice - No one can guarantee their future. You needed protection yesterday. If you haven’t done it yet, you owe yourself and your family to start immediately.