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22 Aug 2019

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.

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.

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.

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