When was the last time you thought about income protection?
You’ve probably noticed that many young adults have a ‘you only live once’ mindset nowadays. This also applies to money management. Millennials now prioritise experiences such as travelling before setting themselves up for a financially secure future. Technological advancements allow young adults to afford experiences such as international travel. This opportunity was most likely not so achievable for their parent’s generation.
Importance of income protection
The problem is that millennials aren’t educated on the importance of income protection. They may be determined to ‘work hard and play hard’ but focus more on saving for travel, for a home and paying off student loan debt. Income protection isn’t a high priority for many young adults today. So what happens if they can no longer earn an income for the next 30 years due to an accident or illness? The reality is that they will have to make serious adjustments to their lifestyle. These adjustments impact on their dreams of travelling and purchasing property. They will also impact quality of life in retirement.
We encourage our clients to take all the necessary steps in protecting their financial wellbeing. Many people think ‘it won’t happen to me’ and don’t properly consider the consequences of an unexpected accident or illness. One of our clients invested in income protection for her partner, who was the main income earner and for herself, a teacher on a part-time contract. She received some unfortunate health news that would keep her out of work for 3-5 years. It also meant that she wouldn’t be able to provide the care needed for the kids, including the pick-up and drop off. Thanks to income protection insurance, the payment of 75% of her salary assisted with living costs but also allowed her husband to take some time off work to look after the children – their most important asset.
What can you do?
So what can you do to change how young adults approach income protection? The first step is educating the next generation on the importance of income protection and it’s never too early to start. Let APS Benefits Group help you set up your family up for financial security. Click here to learn more or call Paul on 1300 131 809.