Why the need for Income Protection Cover is higher than ever
Household expenses, school fees and credit card bills seem to be never-ending. These bills might be manageable when you have a definite source of income, but in the unfortunate event that you’re unable to work due to unemployment, illness or an accident, the ability to pay these demanding bills dramatically decrease.
Unexpected medical bills, and a sudden loss of income, not only increases your expenses, but increases your stress levels too- and no one wants that.
Mont Blanc is determined to ensure our clients are prepared when it comes to the unfolding of the unexpected. This is why we offer our Income Protection cover. Income Protection is a way of securing your financial security in the wake of not being able to earn due to accident, unemployment or illness.
Sanlam highlights the importance of income protection, as they have reported that more South Africans are likely to claim for insurance payouts for death, funeral, sickness and income protection in 2020 than previous years – due to the Coronavirus pandemic. Unfortunately, 2021 holds the same sad reality that disease, accidents and unpredictable unemployment are as common as ever.
Interesting statistics highlight that income protection should be especially attractive to young professionals. In 2020, 59% of all Covid-19 related Sanlam income protection pay-outs were to people younger than 39 years old. Although the thought of protecting your income as a young professional isn’t always top of mind, Sanlam Product Development Actuary Karen Bongers, emphasizes the importance of the shift in mentality, as the long-term loss of income due to illness or injury is the single biggest financial risk young people face throughout their working lives.
Another worrying statistic was founded by PayCurve, in which almost 80% of South Africans sought unsecured loans to meet their monthly financial obligations. Another study by DebtBusters showed that 1.6 million South Africans capitalized on payment holidays, with resulting debt repayments of R20.7 billion.
These statistics coupled with the fact that seven out of ten people will experience at least one injury or illness during their working lives that will prevent them from being able to earn an income. This only adds to the notion that income protection cover is highly needed- yet highly undertaken.
Your ability to make an income makes a large impact on your level of security in our society. Protecting your financial situation and health is the best way of protecting yourself and your loved ones from things that you do not have control over. Income Protection shelters you and your family from unforeseen events and lets you sleep more peacefully.
If you’re interested in finding out more about how our experienced brokers can ensure a tailor-made Insurance Protection cover for you and your loved ones, click the link below!