You’ve probably heard a lot about the power of positive thinking already. It’s an undeniably powerful tool that can lift you out of a rut and move you forward toward your goals when you least expect it. But it’s not a good idea to rely on positive thinking alone in this life. If you want to maximise your chances of achieving all your goals in this earthly existence of ours, a little defensive planning won’t go amiss either. With firm defences guarding your most valuable assets, you’ll be able to focus all your future time and energy on the personal and career goals that mean the most to you, free of insecurities and worries.
Create a Secure Foundation
Just like physical construction projects, building a successful life should start with a firm foundation. But concrete isn’t going to help us build a rewarding career or a fruitful life for ourselves; we need to look for something else. When you’re at the beginning of your career, you don’t need physical defences to protect your assets because the most valuable assets you own are intangibles, like your potential for improvement or your ability to network and make new contacts. The next most valuable asset you have right now, and this is an asset you can and should seek to protect, is your income. With your income protected, you’ll have the firm foundation you need to pursue your personal and professional goals.
The Simplest Way to Protect Your Income
You could seek to protect your income by diversifying your skills, making you more attractive to a broader range of prospective employers and we would encourage you to do this. However, the simplest and most effective way to protect your current income from unexpected interruptions (such as a life-threatening illness or serious accident) is income protection insurance. If you live in Australia, or anywhere with a well-regulated insurance industry, you can obtain income protection insurance, either as a standalone policy or, more usually, as part of a life insurance package.
How Does Income Protection Insurance Work?
While the specifics may vary from one insurer to another and from one region to the next, the way in which income protection works at a foundational level is quite similar across the board.
- It Replaces 50% to 70% of Your Earnings
- You Make a Claim When You’re Unable to Work Due to Illness or Injury
- After the Waiting Period (Usually From 1 to 12 months), You Start to Receive Regular Payments
- You Continue to Receive Payments for the Agreed Claims Period
The claims period is the length of time that you will receive payments while unable to work due to injury or illness. For standard income insurance protection policies, this period is normally from 1-5 years.
Combining the Power of Positive Thinking With Income Protection Insurance
The key to combining these two powerful tools lies in your approach to life in general and to income protection insurance in particular. See it as a safety net that allows you to try and scale the highest professional peaks without fear, and you cannot fail to succeed.
