What is Income Protection Insurance And Do I Need It?

Wikipedia defines Income Protection Insurance as an insurance policy that pays benefits to a policyholder if they are unable to work due to an illness or injury. This means that whether you are working for an employer, or you are self-employed if you are unable to continue to work your daily expenses will be covered. This is a long-term policy that will pay out between 70% and 80% of your actual income for the length of time that it takes you to retire or get released back to work. 

This money is less than what you are used to, but it comes in tax-free, so you should still be able to get by. Some of these contracts also have riders, or clauses added onto them that have extra help for you during your recovery time. The insurance policy is meant to support you, and to allow you to focus on getting better. The goal is to get you back on your feet and back to work as soon as possible.

 

Income Protection Insurance

The money that you receive monthly from Income Protection Insurance Australia can help with many things. Your rent, or mortgage, will not pay itself. Your bills will keep coming in and your family will still need to eat. Don’t forget about your fur babies. They need to be cared for as well. Issues that come up through everyday use, such as a refrigerator that stops working, will be covered by the policy through the monthly payments. Even though the total amount that you get will not allow you to have extra money to play with, it does cover the bills that you normally would not be able to pay.

 The ease of mind that you and your family get by having this insurance will allow you to continue building your way of life up while you are healthy. It will also alleviate stress about maintaining your way of life if you are suddenly not able to work. This type of life event has been known to destroy marriages, do mental damage to all family and friends that are involved, and even make you homeless.

During these times your recovery should be the number one priority on your list. The faster that you can recover, the quicker you can be back to work and earn money once again. Recovery is not only a physical process. Mental health is also at stake now. Many policies will include help for you to deal with mental issues that have arisen during your forced time off.

The short answer to the question above is “yes”. You should take the time to find a good agent and get a policy. As explained above, there are numerous reasons to get insured. Many people think that they don’t need it because nothing will ever happen to them. Accidents do happen, though. They happen every day to people like you. There is usually no warning, and if there is, it is too late to make sure you are covered. Get an Income Protection Insurance policy while you are healthy to ensure that you will be taken care of when you are not.

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