Income protection insurance should be integrated into an adviser’s client offering as part of the client’s greater financial strategy, says diversified financial services group Omniwealth.
In a statement, Omniwealth cited research from Lifewise.org.au which found that only 31 per cent of Australians do not have income protection insurance.
“Find an adviser that will advise on income protection insurance and will rebate the commissions to you so you know it’s not just about selling a product, it’s about protecting your income as part of a greater strategy,” said Omniwealth senior financial planner Andrew Zbik.
“I say to my clients that it would be negligent of me to advise them to purchase investments if an injury or illness stopped their ability to earn an income and they could no longer afford those investments.
“Every Australian needs to protect their number one income-producing asset – themselves,” he said.
Mr Zbik also noted it is possible for investors to choose to have their income protection policy paid by their superannuation fund or by themselves individually.
“The benefit of paying for the policy directly is that you maximise the tax deductions on the premium at your marginal tax rate and any benefit upon successful claim is paid directly to you,” he said.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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