24 Jun, 2024

Ifac advises employees to safeguard their futures by protecting their income

We are advising employees to protect their incomes from life’s uncertainties.

Martin Glennon, our Head of Financial Planning said: 

“In an unpredictable world, safeguarding your income against unforeseen events such as illness or death is not just prudent—it's essential. As financial advisors, we constantly emphasise the importance of income protection to our clients, yet it remains one of the most overlooked aspects of financial planning.

“If you had an accident today, would you and your family be able to survive without your income? A sudden and unexpected loss of income can compromise your ability to meet daily expenses, repay debts, and maintain your standard of living. This is why life cover, specified illness cover and income protection insurance, are so important. They provide a safety net, ensuring that you or your loved ones continue to receive a portion of your income when the unexpected happens.”

Income protection insurance typically covers a percentage of your salary, often up to 70%, during periods when you are unable to work due to illness or injury. Specified Illness cover provides a lump sum if you are diagnosed with certain life-threatening illnesses such as cancer or a heart attack. These benefits not only help in managing day-to-day expenses but also ensure that long-term financial goals, such as saving for retirement or children’s education, remain on track.

In the event of a death, life insurance can provide a lump sum or regular payments to your family, helping them manage financial obligations and sustain their lifestyle.

“We protect the things that our income provides through insurance, our cars, homes, travel plans, and even our pets! We do this to protect our lifestyle. But the biggest threat to our lifestyle is the loss of our Income. Should our income stop due to an unforeseen event, it can have a devastating effect. Protecting our income will alleviate the financial burden, providing peace of mind and financial stability.

“Protecting your income is not just about securing your present; it’s about safeguarding your future. It’s about ensuring that you and your loved ones are prepared for life’s uncertainties. As financial advisors, it is our duty to advocate for comprehensive financial planning that includes robust income protection. After all, your income is your most valuable asset—protect it wisely,” Martin concluded.