Income Protection Insurance: Things To Keep In Mind

You’ve got car insurance. You’ve got home insurance and contents insurance. You even have insurance for that collection of dolls that Aunt Doris willed you. You have insurance for all your possessions, and even insurance that pays your family in the event of your death — but do you have insurance in the event that you’re unable to earn a living?

Income protection insurance can protect your earnings should you be too ill to work, incapacitated by an accident, even protect your business if you’re a business owner. If you’re new to the concept of income protection insurance, here are a few things to keep in mind about this valuable cover.

Income Protection Insurance Can Pay Regardless of Your Circumstances. It’s mind-boggling to consider all the things that can prevent you from working and therefore supporting yourself and your family. Most income protection insurance will pay regardless of whether you’re incapacitated by illness, an accident or a work-related injury. Most policies pay for up to two years.

Income Protection Insurance Can Pay No Matter How Much (Or Little) You Work. Whether you’re working part-time or bringing five figures home per month, there’s an income protection insurance policy that will cover your wages should you be unable to work. Most plans cover 75% of your income.

Income Protection Insurance Can Protect Your Financial Future. Getting back on your feet after an accident or illness is tough. Income protection insurance can protect your finances while you recover, allowing you to pay your regular expenses while also providing spending money. But, this valuable cover can also ensure you a bright financial future. Many income protection insurance policies include a provision that funds your Super account while you are receiving your insurance payments, preventing you from losing ground on your retirement investments.

Income Protection Insurance Is Affordable. Depending upon your income, an income protection policy may be available for less than $200 per year. Since many income protection policy premiums are deducted from your paycheck, that can mean that you’re purchasing this invaluable protection for less than $10.00 per paycheck. Policies may be more expensive if you’re self-employed or work in a blue-collar setting, but the peace of mind income protection insurance offers is priceless.

Income Protection Insurance Is Widely Available. No matter where you work, as long as you’re under 65 years of age, there’s likely an income protection insurance plan available to you. From part-time employees to the self-employed, there’s probably an income protection insurance that you can purchase — and afford. You can purchase this insurance from a broker, directly from an insurance company, or through your Super fund (see below).

Income Protection Insurance May Be Part of Your Super Account. Many Super funds offer income insurance protection insurance as part of their insurance offerings for their members. Call your Super fund’s customer service department, or check online to see if income protection insurance is part of your Super’s insurance plan.

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