Australians are often confused about life insurance policies. People typically find it hard to see the wood for the trees. Consequently, lots of us do not fully understand the advantages offered by these policies.
Income Protection Cover in Focus
Income protection cover will pay you as much as seventy-five percent of your income each month (before tax) if you are not able to work because of sickness or injury. Claimants will have to undergo a benefit period and a waiting period. Furthermore, you are allowed to add benefits for rehabilitation, which are intended to get you back into work quickly.
Based on your insurance company and policy, you can have full control over choosing your income protection insurance. You can decide how much of your salary you will receive, up to a specified limit. Also, you can choose the period of waiting prior to receiving your money, and the time period over which you will be paid — all based on your chosen policy.
Also read: What Income Protection does not Cover?
Calculating your core financial obligations will allow you to determine how much of your salary you need to become financially independent. Income protection cover will allow you to maintain your income at this basic level. As a result, your monthly expenses can be paid as usual, while you concentrate on recovering so you can get back to work.
The Advantages of Income Protection
Carry on repaying your mortgage. Here are the ‘motivators’ that caused Australians to purchase income protection cover:
Mortgaging their house (forty-six percent of those surveyed)
Having children (thirty-five percent of those surveyed)
Ageing (twenty-nine percent of those surveyed)
Once they sign their home loan contract, new homeowners are taking on a large debt. Lots of these loans take years, or decades, to repay. If you fell ill and couldn’t work any longer, could you still make these repayments?
Don’t drown in debt, even if you lose your regular income. If you fall ill, you’re other debts and expenses don’t go away. Actually, you may go further into debt, because of cost recovery.
You can manage these expenses easier with income protection. Absolute Insurance is here to help you protect and make the most of your wealth and health.
Concentrate on recovering. Financial worries are not nice when you are recuperating from injury or sickness. Actually, any stress could hinder your recovery. Surely, things would be easier if you could focus solely on regaining your health?
Sustain your existing lifestyle. Income protection cover is ideal for people who worry that they will need to dramatically alter their lifestyle and daily routine if they get injured or sick. Based on your medical condition, this could be unavoidable. Nonetheless, your circumstances will seem less problematic if you can minimise any financial disruption.
If you haven’t taken out workers’ compensation, your illness or injury might qualify you for this. That is fine; however, the money you receive from income protection will be reduced, to take into account your workers’ compensation payout. Notwithstanding, income protection is a useful backup plan, if you cannot claim workers’ compensation.