Income Protection: when should I start protecting my financial future?
While you can take out income protection insurance as early as your 18th birthday, there are some general milestones that signal the need for income protection. We have compiled the following list to help you determine when you should consider protecting your financial future.
1. An Increase in financial commitments
If you have significantly re-adjusted your budget because of an increase in bill payments or other commitments, it is a very good time to protect your income. This is especially true where your credit score is concerned.
2. Becoming a parent
Not only is raising children expensive, it also means that someone else is relying on you and your ability to work. This makes it an especially important time to protect your assets which take care of your family now and in the future.
Learn more about Citibank's Income Protection Insurance today.
3. A promotion
Making more money often means that you purchase more and will have more valuable assets to protect as a result. Income protection insurance gives you that extra support to protect your new salary. A promotion is also a time at which you should increase your coverage if you are already insured to ensure that you are adequately covered.
4. A change of jobs
Not every job change includes a promotion but it is still a great time to start fresh and get your finances in order. This milestone should prompt you to re-assess your budget and ensure that your assets are all sufficiently protected.
If you have significantly re-adjusted your budget because of an increase in bill payments or other commitments, it is a very good time to protect your income.
5. Becoming self-employed or a small business owner
If you are self-employed or own your own business, you likely only generate an income when you are working. Because you and your staff are relying on your ability to work, it is especially important to look at all the types of insurance you might require.
6. When you start making financial decisions with your partner or spouse
It is not just children and employees that might be relying on your income. If you are making mortgage payments, car payments, tuition payments etc. based on two incomes, you should consider income protection insurance.
7. Tax time
Did you know that income protection premiums can be tax deductible? Before June 30th sneaks up on you, you can pay your annual premium to bring the deduction forward into the current financial year.
Whether you are protecting yourself or your family, Citibank has you covered.
Citibank Prime Income Cover is distributed by Citigroup Pty Limited ABN 88 004 325 080 AFSL No 238098 Australian credit licence 238098 ('Citibank'). The issuer of this product is AIA Australia Limited, ABN 79 004 837 861, AFSL 230043. This product is not a deposit or liability of Citibank. The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. You should read the Product Disclosure Statement (PDS) and consider whether this product is right for you. Terms, conditions and exclusions apply as set out in the policy wording.